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Index Option Strategies

Please note that some of the strategy files below are offered in Adobe Acrobat format.   If you do not currently have the Adobe Acrobat pdf viewer, please click here to download.

Nasdaq 100 Index Options (NDX)

If an investor is bullish on the NDX, one possible strategy to consider is a NDX Bull Call Spread - buy calls at a lower strike price, and sell calls at a higher strike price

If an investor believes that the VIX® and VXNSM indexes are at relatively low levels, and that volatility could increase in the near future, one strategy that could be considered is a long straddle, where the investor buys index calls and puts.

The protective QQQ collar strategy provides downside protection through the use of index put options, and finances the purchase of the puts through the sale of short index call options, in effect trading away some upside potential.

A "buy-write" or “covered call” strategy can appeal to:
(1) An investor who is neutral to moderately bullish on some equities in his/her portfolio;
(2) An investor who is willing to limit his/her upside potential in exchange for some downside protection; and
(3) An investor who would like to be paid for assuming the obligation of selling a particular stock at a specified price.

CBOE Volatility Index (VIX)