Here are some less commonly used stock option trading strategies:
- Iron Butterfly: A complex options strategy that involves buying and selling both call and put options at different strike prices, with the aim of profiting from a narrow range of price movements.
- Straddle: An options strategy where the trader buys both a call option and a put option at the same strike price and expiration date, with the hope of profiting from significant price movement in either direction.
- Collar: A conservative options strategy where the trader buys a protective put option to limit potential losses, while simultaneously selling a call option to generate income.
- Butterfly Spread: An options strategy where the trader buys a call option and a put option at the same strike price, and simultaneously sells two options at different strike prices, with the aim of profiting from a specific range of price movements.
- Condor Spread: A complex options strategy that involves buying and selling both call and put options at different strike prices, with the aim of profiting from a specific range of price movements.
- Ratio Spread: An options strategy where the trader buys a certain number of options at one strike price and sells a greater number of options at a different strike price, with the aim of profiting from a specific range of price movements.
- Diagonal Spread: An options strategy where the trader simultaneously buys and sells options at different strike prices and expiration dates, with the aim of profiting from a specific range of price movements.
- Jade Lizard: A complex options strategy that involves selling a call option, selling a put option, and buying a put option at a lower strike price, with the aim of profiting from a narrow range of price movements.
- Iron Condor: A complex options strategy that involves buying and selling both call and put options at different strike prices, with the aim of profiting from a specific range of price movements.
- Double Diagonal Spread: A complex options strategy that involves buying and selling both call and put options at different strike prices and expiration dates, with the aim of profiting from a specific range of price movements.
It’s important to note that these strategies involve varying levels of risk and should be approached with caution. It’s recommended that investors do their own research and consult with a financial professional before engaging in any stock option trading.
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