Options Bot

Buying a call is the main strategy in options trading. The primary advantage is limited losses and unlimited profit. As seen on the graph above, losses are limited by the premium paid for the option,but the profit is unlimited and depends on the price increase of the underlying asset.

This strategy should be applied when you are confident in the bullish sentiment in the market and the growth in the price of the underlying asset. If the market is dominated by bears, then it is worth taking a closer look at a Put strategy.

This strategy is the opposite of buying a call option and applies in a bearish sentiment market. At first sight it’s not entirely clear why this strategy is appealing, but if you look at the big picture, you can see how it can be extremely profitable.

Here the loss is also limited by the premium paid for the option, and the profit remains unlimited.

The strategy is to sell Put and Call options with the same strike price and contract expiration date. The profit on this strategy is limited, but the loss, on the other hand, is unlimited. It is worth using this strategy when you expect a drop in market volatility.

Just like buying a straddle this is an important strategy

This is a combined strategy and consists of two simpler ones: Long Call A and Long Put A.

The strategy is to buy Put and Call options with the same strike price and contract expiration date. Profit is not limited and arises when the underlying asset moves in any direction.

The best friend of this strategy is high volatility. Losses are limited to premiums paid for two option contracts.