Name: Short Put Setup: Sell (short) a put Bias: Neutral to Bullish Â
Name: Covered Call Setup: Sell (short) a call and Own or Buy (long) equal amount of shares Bias: Neutral to Slightly Bullish (If the underlying sky rockets in price you will be forced to sell at the strike price missing out on the extra gains) Â
Name: Collar Setup: Own the stock and Sell (short) a call and Buy (long) a put Bias: Neutral to Slightly Bullish (If the underlying sky rockets in price you will be forced to sell at the strike price missing out on the extra gains) Â
Name: Bull Call Spread or Vertical Spread Setup: Buy (long) Strike A call and Sell (short) Strike B call – same expiration month for both Bias: Bullish with a target at the short strike Â
Name: Bear Put Spread or Vertical Spread Setup: Buy (long) Strike A put and Sell (short) Strike B put – same expiration month for both Bias: Bearish with a target at the short strike
 Name: Bear Call Spread or Vertical Spread Setup: Sell (short) Strike A call and Buy (long) Strike B call – same expiration month for both Bias: Neutral to bearish Â
Name: Bull Put Spread or Vertical Spread Setup: Buy (long) Strike A put and Sell (short) Strike B put Bias: Neutral to Bullish Â
Name: Long Straddle Setup: Buy (long) Strike A put and Buy (long) Strike A call Bias: Bullish and Bearish – expecting a big move but unsure of direction Â
Name: Short Straddle Setup: Sell (short) Strike A put and Sell (short) Strike A call Bias: Neutral Â
Name: Long Strangle Setup: Buy (long)Â Strike A put and Buy (long) Strike BÂ call Bias: Extreme Bullish and Extreme Bearish Â