These strategies are designed to profit from significant moves in either directionâup or downâdepending on market conditions and volatility.
Strategy | Structure | Best Used When |
---|---|---|
Straddle | Buy call + put at same strike | Expect large move, unsure of direction |
Strangle | Buy OTM call + OTM put | Expect volatility, want lower cost |
Iron Condor | Sell OTM call + put, buy wings | Expect range-bound market |
Iron Butterfly | Sell ATM straddle, buy wings | Expect minimal movement |
Calendar Straddle | Buy long-term, sell short-term straddle | Expect long-term move, short-term calm |
Bilateral Breakout | Conditional long/short entry | Expect breakout from tight range |