Equity Option Strategies - Beginner

The strategies listed here are a collection of beginner level discussions, each of which includes a hypothetical example to illustrate possible strategy outcomes. These discussions and materials are for educational purposes only and are not intended to provide investment advice. Investment decisions should not be made based upon the examples included in these discussions and materials. Please review the Options Disclosure Document in conjunction with these strategy discussions.

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Buying Calls

 

This discussion covers speculative call buying to profit from an underlying stock price increase.

Covered Calls

This discussion introduces the use of covered calls as a good investment tool for both increased return and limited downside price protection of a long position in the underlying stock.

Protective Puts

This discussion introduces the use of a long put for downside price protection of a long position in the underlying stock. Learn how buying protective puts might make good investment sense.

Buying Puts

This discussion covers speculative put buying to profit from an underlying stock price decrease.