Option Buying Strategies (Long Volatility Strategies)
These Strategies to be followed when you expect Big moves or increase in Volatility.

A Thread🧵:

Simple Long Call:

View: Very Bullish
Strike: Can be ATM, ITM or max 1 Strike OTM.
I don't recommend buying deep OTM options, it is pure gambling or Lottery buying.
Reward: Unlimited upside
Risk: Premium paid
POP: Low
Simple Long Put:

View: Very Bearish
Strike: Can be ATM, ITM or max 1 Strike OTM.
I don't recommend buying deep OTM options, it is pure gambling or Lottery buying.
Reward: Unlimited downside
Risk: Premium paid
POP: Low
Simple Long Call:

View: Very Bullish
Strike: Can be ATM, ITM or max 1 Strike OTM.
I don't recommend buying deep OTM options, it is pure gambling or Lottery buying.
Reward: Unlimited
Risk: Premium paid
POP: Low
Call Debit Spread:

View: Bullish
Strike: Should be selected such that max profit is at least 2x of max risk
Reward: Limited
Risk: Limited to the net premium paid
POP: higher than pure call buy
Margin: approx 18k per lot required
Put Debit Spread
View: Bearish
Strike: Should be selected such that max profit is at least 2x of max risk
Reward: Limited
Risk: Limited to the net premium paid
POP: higher than pure Put buy
Margin: approx 18k per lot required
Long Straddle:
View: Big move in either direction
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Reward: Unlimited
Risk: Limited to the net premium paid (high)
POP: high
Long Strangle:
View: Big move in either direction
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Reward: Unlimited
Risk: Limited to the net premium paid (Lower than Straddle)
POP: Lower than Straddle
Long Guts:
Similar to Strangle but buying ITM options
View: Big move in either direction
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Rwrd: Unlmtd
Risk: Lmtd to the net premium paid (< Straddle)
POP:
Strip:
Buy 2 lots of ATM Put and Buy 1 lot of ATM Call
View: Big move in either direction (Bearish Bias)
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Reward: Unlimited
Risk: Lmtd to the net premium paid (high)
POP: high
Strap:
Buy 2 lots of ATM Calls & Buy 1 lot of ATM Put
View: Big move in either direction (Bullish Bias)
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Reward: Unlimited
Risk: Lmtd to the net premium paid (high)
POP: high
Long Iron Fly

View: Move expected in either direction
When to make: When market is rangebound for long time & move is expected or an event is upcoming
Reward: Limited
Risk: Limited
POP: Very High
Long Call ButterFly (Same as Long ironfly but made only from Calls)
But sometimes better rewards
View: Move expected in either direction
When to make: When market is rangebound for long time & move is expected or an event is upcoming
Reward: Limited
Risk: Limited
POP: Very High
Long Put ButterFly (Same as Long ironfly but made only from Puts)
But sometimes better rewards
View: Move expected in either direction
When to make: When market is rangebound for long time & move is expected or an event is upcoming
Reward: Limited
Risk: Limited
POP: Very High
Long Iron Condor
View:, Big Move expected in either direction
When to make: When market is rangebound for long time & Big move is expected or an event is upcoming
Reward: Bigger
Risk: < IronFly
POP:
(also have Similar results for Long Call Condor & Long Put Condor)
Bullish Long Call Ratio Spread
Short ATM Call & Buy 2 OTM Calls less than half price of ATM Call
View: Bullish
When to make: When market is rangebound for long time & move is expected upside
Reward: Unlmtd upside & Limited downside
Risk: Lmtd if market is rangeboud
POP: Very High
Bearish Long Put Ratio Spread
Short ATM Put & Buy 2 OTM Put less than half price of ATM Put
View: Bearish
When to make: When market is rangebound for long time & move is expected upside
Reward: Unlmtd downside & Limited upside
Risk: Lmtd if market is rangeboud
POP: Very High
Strangled Strip
Buy 2lots of OTM Put & Buy 1lot of OTM Call
View: Big move in either direction (Bearish Bias)
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Reward: Unlimited
Risk: Lmtd to the net premium paid (low)
POP: low
Strangled Strap
Buy 2lots of OTM Call & Buy 1lot of OTM Put
View: Big move in either direction (Bullish Bias)
When to make: When market is rangebound for long time and big move is expected or an event is upcoming
Reward: Unlimited
Risk: Lmtd to the net premium paid (low)
POP: low

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MASTER THREAD on Short Strangles.

Curated the best tweets from the best traders who are exceptional at managing strangles.

• Positional Strangles
• Intraday Strangles
• Position Sizing
• How to do Adjustments
• Plenty of Examples
• When to avoid
• Exit Criteria

How to sell Strangles in weekly expiry as explained by boss himself. @Mitesh_Engr

• When to sell
• How to do Adjustments
• Exit


Beautiful explanation on positional option selling by @Mitesh_Engr
Sir on how to sell low premium strangles yourself without paying anyone. This is a free mini course in


1st Live example of managing a strangle by Mitesh Sir. @Mitesh_Engr

• Sold Strangles 20% cap used
• Added 20% cap more when in profit
• Booked profitable leg and rolled up
• Kept rolling up profitable leg
• Booked loss in calls
• Sold only


2nd example by @Mitesh_Engr Sir on converting a directional trade into strangles. Option Sellers can use this for consistent profit.

• Identified a reversal and sold puts

• Puts decayed a lot

• When achieved 2% profit through puts then sold

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The question is:
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Bahcesehir Uni, BAU has an official website
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BAU’s official Twitter account


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Nowhere among them was @BAUDEGS to find