This tutorial talks about all well-known strategies being used in Option and Stock market trading. A detailed list and explaination is as below,

- Buying calls: This is a bullish strategy that involves buying a call option on an underlying asset with the expectation that the price of the asset will rise. A call option(CE) gives the holder the right to buy the underlying asset at a specified price (strike price) at or before a specified date (expiration date). By purchasing a call option, the trader hopes that the underlying asset's price will increase, resulting in the option becoming more valuable. The trader can then sell the option at a profit. The potential profit is unlimited, but the possible loss is limited to the premium paid for the option.
- Buying puts: This is a bearish strategy that involves buying a put option on an underlying asset in the expectation that the price of the asset will fall. On the other hand, a put option gives the holder the right to sell the underlying asset at a specified price (strike price) at or before a specified date (expiration date). By buying a put option, the trader hopes that the underlying asset's price will decrease, resulting in the option becoming more valuable. The trader can then sell the option at a profit. The potential profit is limited to the difference between the strike price and the current price of the underlying asset, and the potential loss is limited to the premium paid for the option.
- Covered calls: This is a strategy that involves selling a call option on an underlying asset that you already own in order to generate income from the option premium. By selling a call option, the trader collects the option premium from the buyer but also agrees to sell the underlying asset at the strike price if the buyer chooses to exercise the option. The strategy can be profitable if the price of the underlying asset stays below the strike price, but it can also limit the potential for gains if the price of the underlying asset rises above the strike price.
- Protective puts: This strategy involves buying a put option on an underlying asset that you already own to protect yourself against a decline in the price of the asset/stock. A protective put gives the holder the right to sell an underlying asset at defined price(strick price), so it can be profitable if the underlying asset's price falls below the strike price. The potential loss is limited to the premium paid for the option.
- Bull call spread: This strategy involves buying a call option with a low strike price and selling a call option with a higher strike price. This strategy is used when the trader thinks the underlying asset price will rise, but not too much. The profit is the difference between the sale and purchase strike price minus the premium paid for the first call option. The maximum profit occurs when the underlying price is above the higher strike price at expiration. The maximum loss is the difference between the two strike prices minus the premium received for the option sold, it occurs when the underlying asset is priced below the lower strike price at expiration.
- Bear put spread: This strategy involves buying a put option with a high strike price and selling a put option with a lower strike price. This strategy is used when the trader thinks the underlying asset price will fall, but not too much. The profit is the difference between the sale and purchase strike price minus the premium received for the option sold. The maximum profit occurs when the underlying asset is priced below the lower strike price at expiration. The max-loss is the difference between the two strike prices minus the premium received for the option sold; it occurs when the underlying asset is priced above the higher strike price at expiration.
- Iron Condor: This is a strategy that combines a bull call spread, and a bear put spread. The trader takes advantage of the volatility of the underlying asset by simultaneously selling both a call option and a put option. The strategy is profitable when the underlying asset price is within the range of the two strike prices of the options sold at expiration. The potential profit is limited, but the potential loss is significant.
- Collar: A collar is a strategy that involves buying an underlying asset, buying a protective put option, and selling a covered call option. The goal is to protect the portfolio against a market decline while earning income from the selling call option.
- Straddle: Purchasing a call and a put option at the same strike price and expiration date is known as a straddle. The goal is to profit from a significant move in either direction of the underlying asset.
- Strangle: A strangle similar to a straddle but with different strike prices for the call and put options. The goal is to profit from a significant move in either direction, but the options will be less expensive than a straddle.
- Butterfly Spread: A butterfly spread is a strategy that involves buying and selling options at various pricing but the same end date. The goal is to profit if the underlying asset price stays within a specific range. Typically, it involves buying one option at the lower strike price, selling two options at the middle strike price, and buying one option at a higher strike price. Depending on the combination of options, the position can be bullish or bearish. The strategy is profitable if the underlying asset price stays within the range of the middle strike price options and the potential profit is limited but defined. The possible loss can be substantial if the underlying asset price moves outside of this range.
- Iron Butterfly: is a trade in which a call option and a put option are purchased at the same strike price and then sold at a separate strike price. The objective is financial gain if the price of the underlying asset maintains a narrow range. The potential gain is constrained but well-defined: it is equal to the difference between the strike prices of the two options sold less the premium paid for the option bought. If the price of the underlying asset swings outside of this range, it could result in a significant loss.
- Calendar Spread: A calendar spread, also known as the horizontal spread, is a strategy that involves buying and selling options with different expiration dates but with the same strike price. The goal is to profit from changes in volatility over time. It's a neutral strategy. The potential profit is limited but defined; it's the difference between the premiums of the two options. The possible loss is limited, and it's usually the premium paid for the option bought.

All these strategies have their own set of risks and potential rewards, and traders should thoughfully consider any such investment objectives and risk tolerance before selecting a strategy. It's always important to understand the underlying mechanics of the strategy and the market conditions under which they work best.

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