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Popular Options Strategies
Prashanth Noble Bose10 min read·Just now--
Options strategies can be grouped by market direction, risk profile, and whether they are designed for premium selling or premium buying. Some strategies work best when the market is expected to stay in a range, while others are used when you expect a strong move up or down.
Below is a practical overview of seven widely used strategies.
1. Bull Put Spread
Bullish / Neutral
Sell a put, buy a cheaper put. Collect premium when you expect the stock to hold or rise.
Goal
You want the stock or index to stay above the short put strike through expiration.
Why traders use it
This strategy allows traders to collect premium upfront while keeping risk defined. It is often used when a trader believes support will hold and price will remain stable or rise modestly.