# Option strategies at a glance

| Strategy | Market phase | Driver | Direction | Max profit | Max loss | Risk defined | Legs | Approval level | Experience |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| [Long Call](https://www.mindtrajour.com/en/academy/strategies/long-call) | Clear uptrend, expected to continue | Delta - you get paid because price moves your way, Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility | bullish | unlimited | the debit paid | Yes | +1 Call @K | 2 (Long calls and puts, cash-secured puts) | Beginner |
| [Long Put](https://www.mindtrajour.com/en/academy/strategies/long-put) | Clear downtrend or an outright crash | Delta - you get paid because price moves your way, Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility | bearish | the strike minus the debit paid | the debit paid | Yes | +1 Put @K | 2 (Long calls and puts, cash-secured puts) | Beginner |
| [Naked Short Call](https://www.mindtrajour.com/en/academy/strategies/short-call-naked) | Range-bound, no trend, price oscillating between levels, Topping out, or a quiet downward drift | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | bearish / neutral | the credit received | unlimited | No | -1 Call @K | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Naked Short Put](https://www.mindtrajour.com/en/academy/strategies/short-put-naked) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | bullish / neutral | the credit received | the strike minus the credit received | Yes | -1 Put @K | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Cash-Secured Put](https://www.mindtrajour.com/en/academy/strategies/cash-secured-put) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | bullish / neutral | the credit received | the strike minus the credit received | Yes | -1 Put @K; + cash equal to K | 2 (Long calls and puts, cash-secured puts) | Beginner |
| [Covered Call](https://www.mindtrajour.com/en/academy/strategies/covered-call) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way | neutral to mildly bullish | (the call strike minus your cost basis) plus the credit received | your cost basis minus the credit received | Yes | +100 shares; -1 Call @Kc | 1 (Covered positions (covered call, protective put) - the lowest approval tier) | Beginner |
| [Protective Put](https://www.mindtrajour.com/en/academy/strategies/protective-put) | Clear uptrend, expected to continue, Big move expected, direction unknown (event, coiling at the edge of a range), Clear downtrend or an outright crash | Delta - you get paid because price moves your way | bullish with downside protection | unlimited | (your cost basis minus the put strike) plus the debit paid | Yes | +100 shares; +1 Put @Kp | 1 (Covered positions (covered call, protective put) - the lowest approval tier) | Beginner |
| [Collar](https://www.mindtrajour.com/en/academy/strategies/collar) | Range-bound, no trend, price oscillating between levels, Big move expected, direction unknown (event, coiling at the edge of a range), Clear downtrend or an outright crash | Delta - you get paid because price moves your way, Theta - you get paid because time passes and premium decays | neutral, capital preservation | (the call strike minus your cost basis) plus (the credit received minus the debit paid) | (your cost basis minus the put strike) minus (the credit received minus the debit paid) | Yes | +100 shares; +1 Put @Kp; -1 Call @Kc | 1 (Covered positions (covered call, protective put) - the lowest approval tier) | Intermediate |
| [Bull Call Spread](https://www.mindtrajour.com/en/academy/strategies/bull-call-spread) | Basing out, or a quiet upward drift, Clear uptrend, expected to continue | Delta - you get paid because price moves your way | bullish | the spread width minus the debit paid | the debit paid | Yes | +1 Call @K_low; -1 Call @K_high | 3 (Defined-risk spreads) | Beginner |
| [Bear Call Spread](https://www.mindtrajour.com/en/academy/strategies/bear-call-spread) | Range-bound, no trend, price oscillating between levels, Topping out, or a quiet downward drift, Clear downtrend or an outright crash | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way, Vega - you get paid on a change in implied volatility | bearish / neutral | the credit received | the spread width minus the credit received | Yes | -1 Call @K_low; +1 Call @K_high | 3 (Defined-risk spreads) | Intermediate |
| [Bull Put Spread](https://www.mindtrajour.com/en/academy/strategies/bull-put-spread) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way, Vega - you get paid on a change in implied volatility | bullish / neutral | the credit received | the spread width minus the credit received | Yes | -1 Put @K_high; +1 Put @K_low | 3 (Defined-risk spreads) | Intermediate |
| [Bear Put Spread](https://www.mindtrajour.com/en/academy/strategies/bear-put-spread) | Topping out, or a quiet downward drift, Clear downtrend or an outright crash | Delta - you get paid because price moves your way | bearish | the spread width minus the debit paid | the debit paid | Yes | +1 Put @K_high; -1 Put @K_low | 3 (Defined-risk spreads) | Beginner |
| [Short Iron Condor](https://www.mindtrajour.com/en/academy/strategies/short-iron-condor) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | neutral | the credit received | the greater of the width of the put wing and the width of the call wing minus the credit received | Yes | +1 Put @K1; -1 Put @K2; -1 Call @K3; +1 Call @K4 | 3 (Defined-risk spreads) | Intermediate |
| [Short Iron Butterfly](https://www.mindtrajour.com/en/academy/strategies/short-iron-butterfly) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | neutral, price pinned at the strike | the credit received | the spread width minus the credit received | Yes | +1 Put @K-W; -1 Put @K; -1 Call @K; +1 Call @K+W | 3 (Defined-risk spreads) | Advanced |
| [Long Call Butterfly](https://www.mindtrajour.com/en/academy/strategies/long-call-butterfly) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way | neutral with a price target | the spread width minus the debit paid | the debit paid | Yes | +1 Call @K-W; -2 Call @K; +1 Call @K+W | 3 (Defined-risk spreads) | Intermediate |
| [Long Put Butterfly](https://www.mindtrajour.com/en/academy/strategies/long-put-butterfly) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way | neutral with a price target | the spread width minus the debit paid | the debit paid | Yes | +1 Put @K+W; -2 Put @K; +1 Put @K-W | 3 (Defined-risk spreads) | Intermediate |
| [Broken Wing Butterfly](https://www.mindtrajour.com/en/academy/strategies/broken-wing-butterfly) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift, Topping out, or a quiet downward drift | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way | neutral with a directional tilt | narrow width minus the debit, or narrow width plus the credit, at the middle strike | (the width of the wide wing minus the width of the narrow wing) minus the credit received | Yes | +1 Call @K_low; -2 Call @K; +1 Call @K_high (unequal wing width) | 3 (Defined-risk spreads) | Advanced |
| [Jade Lizard](https://www.mindtrajour.com/en/academy/strategies/jade-lizard) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility, Delta - you get paid because price moves your way | neutral to mildly bullish | the credit received | the put strike minus the credit received | Yes | -1 Put @Kp; -1 Call @Kc1; +1 Call @Kc2 | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Long Straddle](https://www.mindtrajour.com/en/academy/strategies/long-straddle) | Big move expected, direction unknown (event, coiling at the edge of a range) | Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility | direction-neutral, needs a big move | unlimited to the upside, strike minus debit to the downside | the debit paid | Yes | +1 Call @K; +1 Put @K | 2 (Long calls and puts, cash-secured puts) | Intermediate |
| [Short Straddle](https://www.mindtrajour.com/en/academy/strategies/short-straddle) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | direction-neutral | the credit received | unlimited to the upside; strike minus credit to the downside | No | -1 Call @K; -1 Put @K | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Long Strangle](https://www.mindtrajour.com/en/academy/strategies/long-strangle) | Big move expected, direction unknown (event, coiling at the edge of a range) | Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility | direction-neutral, needs a very big move | unlimited to the upside, put strike minus debit to the downside | the debit paid | Yes | +1 Call @Kc (OTM); +1 Put @Kp (OTM) | 2 (Long calls and puts, cash-secured puts) | Intermediate |
| [Short Strangle](https://www.mindtrajour.com/en/academy/strategies/short-strangle) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Theta - you get paid because time passes and premium decays, Vega - you get paid on a change in implied volatility | neutral | the credit received | unlimited to the upside; put strike minus credit to the downside | No | -1 Call @Kc (OTM); -1 Put @Kp (OTM) | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Call Ratio Spread](https://www.mindtrajour.com/en/academy/strategies/call-ratio-spread) | Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way | mildly bullish with a target at the upper strike | the spread width plus the credit received | unlimited above the upper strike | No | +1 Call @K_low; -2 Call @K_high | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Call Backspread](https://www.mindtrajour.com/en/academy/strategies/call-backspread) | Big move expected, direction unknown (event, coiling at the edge of a range), Clear uptrend, expected to continue | Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility, Delta - you get paid because price moves your way | strongly bullish | unlimited to the upside | the spread width plus the debit paid | Yes | -1 Call @K_low; +2 Call @K_high | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Synthetic Long Stock](https://www.mindtrajour.com/en/academy/strategies/synthetic-long) | Clear uptrend, expected to continue | Delta - you get paid because price moves your way | strongly bullish | unlimited | the strike plus the debit paid | Yes | +1 Call @K; -1 Put @K | 4 (Uncovered short positions - the highest approval tier and margin requirement) | Advanced |
| [Long Call Calendar](https://www.mindtrajour.com/en/academy/strategies/long-call-calendar) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Vega - you get paid on a change in implied volatility, Theta - you get paid because time passes and premium decays, Path-dependent - the outcome depends on WHEN price is where, not just where it ends up | neutral near term, bullish longer term | no closed form - it depends on IV and remaining time | approximately the debit | Yes | -1 Call @K (near expiration); +1 Call @K (far expiration) | 3 (Defined-risk spreads) | Advanced |
| [Long Put Calendar](https://www.mindtrajour.com/en/academy/strategies/long-put-calendar) | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected | Vega - you get paid on a change in implied volatility, Theta - you get paid because time passes and premium decays, Path-dependent - the outcome depends on WHEN price is where, not just where it ends up | neutral near term, bearish longer term | by simulation only | approximately the debit | Yes | -1 Put @K (near expiration); +1 Put @K (far expiration) | 3 (Defined-risk spreads) | Advanced |
| [Long Call Diagonal](https://www.mindtrajour.com/en/academy/strategies/long-call-diagonal) | Basing out, or a quiet upward drift, Range-bound, no trend, price oscillating between levels | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way, Path-dependent - the outcome depends on WHEN price is where, not just where it ends up | moderately bullish | by simulation only - it depends on the residual value of the long call | approximately the debit | Yes | +1 Call @K_low (far expiration, deep ITM); -1 Call @K_high (near expiration, OTM) | 3 (Defined-risk spreads) | Intermediate |
| [Long Put Diagonal](https://www.mindtrajour.com/en/academy/strategies/long-put-diagonal) | Topping out, or a quiet downward drift, Range-bound, no trend, price oscillating between levels | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way, Path-dependent - the outcome depends on WHEN price is where, not just where it ends up | moderately bearish | by simulation only | approximately the debit | Yes | +1 Put @K_high (far expiration, deep ITM); -1 Put @K_low (near expiration, OTM) | 3 (Defined-risk spreads) | Advanced |
| [The Wheel](https://www.mindtrajour.com/en/academy/strategies/wheel) | Range-bound, no trend, price oscillating between levels, Basing out, or a quiet upward drift | Theta - you get paid because time passes and premium decays, Delta - you get paid because price moves your way | neutral to bullish over the long run | no single payoff - the sum of the credits plus or minus the price move | full stock risk in phases 2 and 3, less every credit collected | Yes | Phase 1: cash-secured put; Phase 2 (after assignment): long stock; Phase 3: covered call; Phase 4 (after assignment): return to phase 1 | 2 (Long calls and puts, cash-secured puts) | Beginner |

## Legend

### Notation

| Symbol | Meaning |
| --- | --- |
| K | strike |
| Kp | put strike |
| Kc | call strike |
| K_low | lower strike |
| K_high | higher strike |
| S0 | your cost basis in the stock |
| S_T | price at expiration |
| D | net debit paid |
| C | net credit received |
| W | width of the spread (K_high - K_low) |

### Driver

| Driver | Meaning |
| --- | --- |
| richtung | Delta - you get paid because price moves your way |
| zeitwert | Theta - you get paid because time passes and premium decays |
| volatilitaet | Vega - you get paid on a change in implied volatility |
| bewegung | Gamma / realised vol - you get paid on the size of the move, whichever way it goes |
| kursweg | Path-dependent - the outcome depends on WHEN price is where, not just where it ends up |