Options Trading Strategies refers to trading strategies that involve buying and selling options and possibly their corresponding underlying security.
There are three types of options trading strategies:
Bullish strategies: These strategies become profitable when the underlying security price increases. Example: Long call strategy
Bearish strategies: These strategies become profitable when the underlying security price decreases. Example: Call Bear Spread strategy
Neutral or non-directional strategies: This third type of options trading strategies is used by traders who does not known or does not want to predict the underlying security price direction. Example: Call Time Spread
