Basic Option Strategy in Derivative Analysis

Basic Option Strategy

Welcome to Technical Kingdom School, our extensive educational resource for investors of all levels.

Basic Option Strategy

Derivative Analysis

Basic Concepts of Derivatives

Derivative Indicators

Basic Options Strategy

Advanced Option Strategy

Derivative Analysis FAQ’s

Derivative Analysis Glossary

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These articles will introduce you to the concepts, strategies and common terminology of technical analysis, as well as other financial analysis methods and important investing topics.

Long Call

The most fundamental option trading strategy is the long call option strategy.

Short Call

A short call is a bearish trading strategy opposite of long call.

Long Put

A long put option is one that is purchased in anticipation of a decline in the underlying asset.

Short Put

Trader expecting that stock to rise or stay sideways at a minimum.

Long Straddle

Long Straddle is the most popular volatility strategy and the easiest to understand.

Long Strangle

Trader purchases both an OTM call option and an OTM put option at the same time.

Short Straddle

The Short Straddle is precisely the opposite of a (Long) Straddle.

Short Strangle

A short strangle sells an out-of-the-money put and an out-of-the-money call at the same time.