Option Strategies - Intermediate

The strategies listed here are a collection of intermediate 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.

Cash-secured Puts

This discussion introduces the use of writing cash-secured puts as a way to ultimately acquire underlying shares at a target price.

Covered Combinations

This discussion covers the potential upside and downside benefits of writing a combination (short call and short put) covered by long shares of the underlying stock. See how flexible options can be as an investment tool.

Equity Collars

This discussion covers equity collars used for downside price protection of an underlying stock position at a potentially lower cost than with a simple protective put.

Buying Index Calls

This segment illustrates the possible outcome of buying calls to participate in market advances.

Protective Index Collars

This segment illustrates the possible outcome of buying a protective collar with minimum net premium costs.

Buying Index Puts

This segment illustrates the possible outcome of buying puts in anticipation of a market correction.