These strategies are designed to profit from movement in a single direction—either bullish (up) or bearish (down)—based on your market outlook.
Strategy | Direction | Structure | Best Used When |
---|---|---|---|
Long Call | Bullish | Buy call | Expect strong upward move |
Long Put | Bearish | Buy put | Expect strong downward move |
Covered Call | Neutral to Bullish | Own stock + sell call | Expect flat or modest rise |
Protective Put | Bullish with downside protection | Own stock + buy put | Want insurance against drop |
Bear Put Spread | Bearish | Buy high strike put, sell low strike put | Expect moderate decline |
Bull Call Spread | Bullish | Buy low strike call, sell high strike call | Expect moderate rise |