Straddle, strangle, condor, butterfly, and spread are all different types of options trading strategies available in the ‘Create Strategy’ form. Each strategy involves unique combinations of buying and/or selling options contracts with different strike prices and expiration dates, aiming to capitalise on specific market conditions or expectations.
- Straddle: Buying call and put options with the same strike price and expiration date to aim to profit from significant price movements.
- Strangle: Purchasing call and put options with different strike prices but the same expiration date to anticipate volatility and large price movement.
- Condor: A complex options strategy involving calls and puts with four different strike prices, aiming to profit from limited price movement within a range.
- Butterfly: Buying and selling three options of the same type (calls or puts) with the same expiration date but different strike prices to achieve a specific price movement outcome.
- Spread: Simultaneously buying and selling options of the same type with different strike prices or expiration dates to capitalise on price differentials.