Implied Volatility Increase

A bear put spread consists of buying one put and selling another put, at a lower strike, to offset part of the upfront cost.

This strategy consists of buying one call option and selling another at a higher strike price to help pay the cost.

This strategy allows an investor to purchase stock at the lower of strike price or market price during the life of the option.

This strategy profits if the underlying stock is at the body of the butterfly at expiration.

This strategy combines a longer-term bullish outlook with a near-term neutral/bearish outlook.

This strategy profits if the underlying stock is outside the outer wings at expiration.

This strategy profits if the underlying stock is outside the wings of the iron butterfly at expiration.

This strategy consists of buying puts as a means to profit if the stock price moves lower.

This strategy combines a longer-term bearish outlook with a near-term neutral/bullish outlook.

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the upside potential is unlimited.

The initial cost to initiate this strategy is rather low, and may even earn a credit, but the downside potential is substantial.

This strategy consists of buying a call option and a put option with the same strike price and expiration.

This strategy profits if the stock price moves sharply in either direction during the life of the option.

This strategy consists of adding a long put position to a long stock position.

This strategy combines a long call and a short stock position.