Name: Long Call Description: The long call gives the buyer the right to purchase the stock at the strike price.  You want to buy a call if you believe the price of the underlying is going to go up.  Calls offer insurance over buying the stock outright since you can [...]

Name: Long Put Setup: Buy (long) a put Bias: Bearish   […]

Name: Short Call Setup: Sell (short) a call Bias: Neutral to Bearish   […]

Name: Short Put Setup: Sell (short) a put Bias: Neutral to Bullish   […]

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)   […]

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)   […]

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   […]

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   […]

Name: Bull Put Spread or Vertical Spread Setup: Buy (long) Strike A put and Sell (short) Strike B put Bias: Neutral to Bullish   […]

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   […]

Name: Short Straddle Setup: Sell (short) Strike A put and Sell (short) Strike A call Bias: Neutral   […]