**Options Strategies Broaden Your Range of Trades**

1/n

Going Long Calls/Puts are the plays most retail traders use (equity trader strategies, higher leverage/lower margin)

The beauty of options is there are many more ways to profit, beyond pure directional bias.

#MomoTwit

2/n *Quick Review of Options*

Options are a derivative contract which allows the holder to buy/sell the underlying at a determined price by a certain expiration date.

Options Greeks (delta, gamma, vega, theta) affect contract P/L based on changes in volatility, time, & price.
3/n -Covered Calls-

If you have 100 shares of XYZ stock, you could short a call contract, w/ your shares as collateral. Strategy allows you to collect premium.

Either your call expires worthless or it closes ITM. If ITM you sell the shares at the strike price of ur short call
4/n Generally, you employ a covered call strategy when you have a near/short term neutral/bearish view on your position. Thus this allows you to collect money/premium or hedge when the stock is not rallying.
5/n -Straddle-

This is where the trader buys a call & put at the same strike price and expiration date. You would do this when u expect a large move outside the expected range in *either* direction

You will lose on this trade if the stock does not move/stays within a range.
6/n -Strangle-

The trader is buying OTM call & put with the expectations of a large move. Cheaper than a strangle due to buying OTM. However, the move u need to be profitable may be larger. Your risk is only the premium you paid for the contracts, just like with a straddle
7/n *Vertical Spreads*

A vertical spread is a two leg strategy. The holder is long one call/put and short a separate strike call/put, both legs will have the same expiration date.

Two major classifications - Debit & Credit spread
8/n -Debit Spread-

Trader is long one contract, short a further out strike. The idea behind this is to cheapen the cost of the trade/cap your risk. However by shorting the further out call, you cap your potential gains.
9/n -Debit Spread PT. 2-

This trade is most effective when capturing a directional move that is not outside an expected range. Your risk is the premium you pay for this spread.

If you're expecting a large move in one direction, you're better off taking the long call alone imo.
10/n -Credit Spread-

Inverse of a debit spread. Short one contract, long a further out strike. Your risk is the spread between the strike prices minus the premium received.

Below is the P/L graph of a Put credit spread. Bullish directional trade vs put debit spread (bearish).
11/n -Credit Spread PT.2-

With a credit spread, you are receiving a premium, but your risk/loss could be larger.

Just like the debit spread, you are taking a directional trade, however you are betting on the neutral/opposing direction since you are short a closer ITM/ATM strike
12/n -Iron Condor-

This is a combination of one OTM call & one OTM put credit spread. You're essentially betting on the underlying stock trading within a range until expiration, usually the expected range.

Ideally you want low volatility to take advantage of the time decay.
13/n -Iron Butterfly-

Can either think of this as two spreads or combo of short straddle + long strangle. Similar to an iron condor, except your aiming for the underlying to close at a target price by your expiration.

Sell 1C/1P same strike, long 1 OTM Call/1 OTM Put.
14/n -Calendar Spread-

The goal of this trade is to take advantage of time and volatility. Here you short the nearer-term option, and long a further out expiration. Both options need to be the same strike, same side, different expirations.
15/n -Calendar Spread PT.2-

Ideally you choose an ATM strike. Shorter term neutrality to allow the near-term expiration to expire worthless, and then u benefit on the long further out expiration if the price moves higher.
16/n **Summary/Ending Notes**

There are many different ways to combine long/short options to trade a multitude of scenarios. Here my goal was to introduce people to some of the common strategies utilized.

Please go out and do your own research on individual strategies
17/n **Resources**

*Accessible Places to Learn More About Options/ Option Strategies*

1. Investopedia
2. TastyWorks/TastyTrade
3. OptionsAlpha (Youtube)
4. My friends @NickDChow and @HappyGTrades both experienced options traders.

Most of all, Google is your friend.
18/n **Accounts To Follow**

If you wanna delve deeper into options dynamics/higher-level options strategies/derivative markets/gamma exposure, make sure to check out these accounts.

1. @Ksidiii
2. @jam_croissant
3. @bennpeifert
4. @VolatilityWiz
5. @SqueezeMetrics
19/19 **Sources**

The photos were sourced from Investopedia and ProjectOptions

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🌿𝑻𝒉𝒆 𝒔𝒕𝒐𝒓𝒚 𝒐𝒇 𝒂 𝑺𝒕𝒂𝒓 : 𝑫𝒉𝒓𝒖𝒗𝒂 & 𝑽𝒊𝒔𝒉𝒏𝒖

Once upon a time there was a Raja named Uttānapāda born of Svayambhuva Manu,1st man on earth.He had 2 beautiful wives - Suniti & Suruchi & two sons were born of them Dhruva & Uttama respectively.
#talesofkrishna https://t.co/E85MTPkF9W


Now Suniti was the daughter of a tribal chief while Suruchi was the daughter of a rich king. Hence Suruchi was always favored the most by Raja while Suniti was ignored. But while Suniti was gentle & kind hearted by nature Suruchi was venomous inside.
#KrishnaLeela


The story is of a time when ideally the eldest son of the king becomes the heir to the throne. Hence the sinhasan of the Raja belonged to Dhruva.This is why Suruchi who was the 2nd wife nourished poison in her heart for Dhruva as she knew her son will never get the throne.


One day when Dhruva was just 5 years old he went on to sit on his father's lap. Suruchi, the jealous queen, got enraged and shoved him away from Raja as she never wanted Raja to shower Dhruva with his fatherly affection.


Dhruva protested questioning his step mother "why can't i sit on my own father's lap?" A furious Suruchi berated him saying "only God can allow him that privilege. Go ask him"
Ivor Cummins has been wrong (or lying) almost entirely throughout this pandemic and got paid handsomly for it.

He has been wrong (or lying) so often that it will be nearly impossible for me to track every grift, lie, deceit, manipulation he has pulled. I will use...


... other sources who have been trying to shine on light on this grifter (as I have tried to do, time and again:


Example #1: "Still not seeing Sweden signal versus Denmark really"... There it was (Images attached).
19 to 80 is an over 300% difference.

Tweet: https://t.co/36FnYnsRT9


Example #2 - "Yes, I'm comparing the Noridcs / No, you cannot compare the Nordics."

I wonder why...

Tweets: https://t.co/XLfoX4rpck / https://t.co/vjE1ctLU5x


Example #3 - "I'm only looking at what makes the data fit in my favour" a.k.a moving the goalposts.

Tweets: https://t.co/vcDpTu3qyj / https://t.co/CA3N6hC2Lq