What is options trading strategy?

Options trading strategy is one of the most complex subjects in options trading, but it's a subject that any options trader needs to be familiar with. There is a huge range of different strategies that can be can used when trading options, and these all have varying characteristics.

What are the most bearish options trading strategies?

The most bearish of options trading strategies is the simple put buying or selling strategy utilized by most options traders. The market can make steep downward moves. Moderately bearish options traders usually set a target price for the expected decline and utilize bear spreads to reduce cost.

What are neutral strategies in options trading?

Neutral strategies in options trading are employed when the options trader does not know whether the underlying asset's price will rise or fall. Also known as non-directional strategies, they are so named because the potential to profit does not depend on whether the underlying price will increase or decrease.

Are options a good strategy for a beginner investor?

Options trading may sound risky or complex for beginner investors, and so they often stay away. Some basic strategies using options, however, can help a novice investor protect their downside and hedge market risk. Here we look at four such strategies: long calls, long puts, covered calls, protective puts, and straddles.