Knowing what a call or put is isn't the same as knowing which strategy actually fits a given market view. This category covers the most commonly used options strategies — what they are, how they're constructed, and the specific situations traders reach for each one.
If you haven't covered the fundamentals yet, start with Options Basics first — every strategy here assumes you're already comfortable with calls, puts, and expiration. For the risk-management side of using these strategies well, see the dedicated Risk Management category.
Frequently Asked Questions
Options Strategies FAQ
What's the easiest options strategy to start with?
Long calls and long puts are typically the simplest starting point since they mirror a straightforward bullish or bearish view with defined risk — see Best Options Strategies for Beginners for a full comparison of common starting strategies.
What's the difference between a spread and a covered call?
A spread combines two options (like a bull call spread) to define both the cost and the maximum gain of a trade. A covered call combines an options contract with owning the underlying stock — a different structure aimed at generating income from shares you already hold.
Do I need a lot of capital to use spreads?
Spreads are actually often used specifically to reduce capital requirements and cap risk compared to buying a single option outright, since selling one leg of the spread offsets part of the cost of buying the other.
How do I know which strategy fits my market view?
It starts with being specific about your view — direction, expected timeframe, and how confident you are — then matching that to a strategy built for it. Best Options Strategies for Beginners walks through this matching process directly.