Name: Short Strangle Setup: Sell (short)Â Strike A put and Sell (short) Strike BÂ call Bias: Neutral Â
Name: Synthetic Long Setup: Buy (long) Strike A call and Sell (short) Strike A put – same expiration month for both Bias: Bullish Â
Name: Synthetic Short Stock Setup: Sell (short) Strike A call and Buy (long) Strike A put Bias: Bearish Â
Name: Front Spread w/ Calls Setup: Buy (long) Strike A call and Sell (short) 2 Strike B calls Bias: Neutral to Slightly Bullish Â
Name: Front Spread w/ Puts Setup: Sell (short) 2 Strike A puts and Buy (long) Strike B put – contracts will have the same expiration Bias: Neutral to Slightly Bearish Â
Name: Back Spread w/ Calls Setup: Sell (short) Strike A call and Buy (long) 2 Strike B calls Bias: Very Bullish Â
Name: Back Spread w/ Puts Setup: Buy (long) 2 Strike A puts and Sell (short) Strike B put – contracts will have the same expiration Bias: Very Bearish Â
Name: Long Calendar Spread w/ Calls Setup: Sell (short) Strike A call (front month) and Buy (long) Strike A call at a later month (back month) Bias: Neutral Â
Name: Long Calendar Spread w/ Puts Setup: Sell (short) Strike A put (front month) and Buy (long) Strike A put at a later month (back month) Bias: Neutral Â
Name: Diagonal Spread w/ Calls Setup: Sell (short) out-of-the-money Strike A call (front month) and Buy (long) Strike B call at a later month (back month) and When the short call expires sell another call at Strike A Bias: Neutral to Bearish Â