All important Options Selling Strategies..
A thread🧵:

Simple Directional Call Sell

View: Neutral to bearish
Limited Profit, unlimited risk.
High Probability of profit.
High Margin required.
Simple Directional Put Sell

View: Neutral to Bullish
Limited Profit, unlimited risk.
High Probability of profit.
High Margin required.
Call Credit Spread

View: Neutral to bearish
Limited Profit, Limited risk.
High Probability of profit.
Low Margin required.
Put Credit Spread

View: Neutral to Bullish
Limited Profit, Limited risk.
High Probability of profit.
Low Margin required.
Short strangle

View: Neutral (Non-Directional)
Limited Profit, Unlimited risk.
High Probability of profit.
High Margin required.
Short Straddle

View: Very Neutral (Non-Directional)
Limited Bigger Profit, Unlimited risk.
Lower Probability of profit compared to Strangle.
High ROI can be achieved.
High Margin required.
Short Guts (Inverted Short Strangle)

View: Neutral (Non-Directional)
Limited Profit, Unlimited risk.
High Probability of profit compared to Strangle.
High Margin required but you get higher Premium credit as you are selling expensive deep ITM options
Bearish Jade Lizard (bearish Ladder)

View: Neutral to Bearish
Limited Profit, unlimited risk Upside.
High Probability of profit.
Low Margin required than short strangle.
Bullish Jade Lizard (Bullish Ladder)

View: Neutral to Bullish
Limited Profit, unlimited risk downside.
High Probability of profit.
Low Margin required than short strangle.
Covered Call
U must own 1lot of underlying Shares or Futures.
View: Bullish (but evn if underlying goes slightly lower stil u wont lose money)
Limited Profit, unlimited risk Downside but lower risk compared to only having Long position.
A little Higher Probability of Profit (POP)
Iron Condor

View: Neutral (Non directional)
Limited Profit, Limited risk
High Probability of profit.
Low Margin required than short strangle.
Call Condor
It's same as iron condor but made only by calls.
Some times due to inefficient options pricing u get better results in call condor comparatively
View: Neutral (NonDirectional)
Limited Profit, Limited risk
High POP.
Low Margin required than short strangle.
Put Condor
It's same as iron condor but made only by Puts.
Some times due to inefficient options pricing u get better results in Put condor comparatively
View: Neutral (NonDirectional)
Limited Profit, Limited risk
High POP.
Low Margin required than short strangle.
Iron Fly

View: Neutral (Non directional)
Limited but better Profit, Limited risk
Lower POP than Iron Condor.
Higher ROI can be achieved using IF.
Low Margin required
Call Butterfly
It's same as iron fly but made only by Calls.
Sometimes u get better results in Call Butterfly comparatively
View: Neutral (Non directional)
Limited but better Profit, Limited risk
Lower POP than Iron Condor
Higher ROI can be achieved using Fly.
Low Margin required
Put Butterfly
It's same as iron fly but made only by Put.
Sometimes u get better results in Put Butterfly comparatively
View: Neutral (Non directional)
Limited but better Profit, Limited risk
Lower POP than Iron Condor
Higher ROI can be achieved using Fly.
Low Margin required
Call 1:2 Ratio Spread

View: Slightly Bullish with No downside risk
High POP.
Higher ROI can be achieved if underlying closes near your sold leg at Expiry.
Low Margin required
Put 1:2 Ratio Spread

View: Slightly Bearish with No Upside risk
High POP.
Higher ROI can be achieved if underlying closes near your sold leg at Expiry.
Low Margin required
Calendar Spread
Sell (Put or Call) currnt Expiry
Buy same strike (Put or Call) of next Expiry
View: Neutral
Limited big Profit, lower limited risk.
Higher POP
High ROI Possible
Low Margin required.
If sudden big move comes, Vega of farther expiry will help control the losses.
Call Diagonal Spread
Sell Call immediate Expire
Buy the far OTM strike Call of next Expiry
View: Neutral to bearish
Limited Bigger Profit, limited risk (No risk downside)
Higher POP
High ROI can be achieved.
Low Margin required.
Put Diagonal Spread
Sell Put immediate Expire
Buy the far OTM strike Put of next Expiry
View: Neutral to bullish
Limited Bigger Profit, limited risk (No risk upside)
Higher POP
High ROI can be achieved.
Low Margin required.
Iron Condor using Calendar Spread

Innovative Calendar Option writing strategy.
You can read the details in the picture and decide when to use this strategy.
Iron Condor using Diagonal Spread

Innovative Calendar Option writing strategy.
You can read the details in the picture and decide when to use this strategy.
Iron Fly using Diaogonal Spread

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More from Optionslearnings

THREAD: 14 of the best resources/topics for anyone who wants to start option selling as a career. 🧵

Collaborated with @niki_poojary

1. Best Sources of knowledge for a beginner in option selling?

Zerodha Varsity from @Nithin0dha's team & the @tastytrade financial network.

Links:

2. Top YouTube Channel for Options Learning?

Power of Stocks - Subhasish Pani

What you'll learn:
1. How to form a trading plan.
2. How to scale an account with risk-reward in option selling.
3. Technical analysis logics you can use daily.

15


3. What are the preconditions to start option Selling:

You should know technical Analysis basics like:
- Support/Resistance
- Chart Patterns
- Candle Patterns
- Dow Theory (HH, LL)

This will help you start taking high probability trades.

4. Risk Management is a must for option selling

If you don't learn to manage your risk, making money in trading is going to be an extremely difficult endeavor

Have some rules:
1. Risk no more than 0.25% per trade as a beginner
2. Risk no more than 2% in a day for the first year

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