Part8 Trading Masterclass

Introduction to Options Trading Strategies
Options are like the “Swiss army knife” of the financial markets — flexible tools that can be shaped to fit bullish, bearish, neutral, or volatile market views. They’re contracts that give you the right, but not the obligation, to buy or sell an asset at a specific price (strike) on or before a certain date (expiry).

While most beginners think options are just for making huge leveraged bets, seasoned traders use strategies — combinations of buying and selling calls and puts — to control risk, generate income, or hedge portfolios.

Why Use Strategies Instead of Simple Buy/Sell?
Risk Management: You can cap your losses while keeping upside potential.

Income Generation: Strategies like covered calls and credit spreads generate consistent cash flow.

Direction Neutrality: You can profit even when the market moves sideways.

Volatility Play: You can design trades to profit from expected volatility spikes or drops.

Hedging: Protect stock holdings against adverse moves.