Advanced options strategies

Why not play both directions? It is a strategy that goes into profit following an important directional movement indifferently up or down, and which exploits the asymmetry of the options, so that the gain of one side exceeds the loss of the other.

It is a strategy similar to the long straddle, less expensive, aimed at taking profit from a directional movement of the market up or down of significant magnitude, or from an increase in implied volatility. Also for the strangle it is necessary not to fall asleep on the position until maturity.

The first short strategy delta neutral in our course. In this video lesson deepen one of the most used positions by traders who want to maximize profits on short selling, taking advantage of the time decay and a reduction in implied volatility.

Among the most used by budding optionists, this short strategy gives the illusion of leading to excellent profits and great chances of success, but it is very complex to manage. A favorite combo even by the great theoretical gurus, who have never traded an option on the market.

One of our favorites, especially if mounted on the put side, the ratio spread is versatile, flexible, lends itself to multiple adjustments with just a few clicks and allows for optimal management of volatility trading risk. Here are the basic concepts.

Variant of the ratio spread and also widely used by us on different markets and in many situations. Mounted in conditions of excess implied volatility, it can give great satisfaction and allows for targeted management of price dynamics.

We delve into a very powerful directional strategy that requires large movement, possibly with increasing implied volatility. The backspread can bring important profits, but it has to be managed carefully, if the market remains sideways.

We move on the calendar and at the same strike we put option contracts on different maturities on the market. These strategies take advantage of the different time decay and allow more experienced traders to play with volatility curves over time.

They are complex strategies that involve combinations of different options in time and space. It is necessary to understand the dynamics of price formation and how these can change over time and in changing conditions of volatility.