Options Strategy Cheatsheet
Duodecimal Capital Edition
Covered Call
Bullish
Theta +
Best Use
Neutral to Moderately Bullish. Willing to sell shares at Strike.
Setup
Long 100 Shares + Sell 1 OTM Call
Cash Secured Put
Neutral/Bull
Theta +
Best Use
Willing to buy stock at Strike price.
Setup
Sell 1 OTM Put (Cash Covered)
Bull Put Spread
Bullish
Theta +
Best Use
Moderately Bullish. Limited Risk credit.
Setup
Sell Higher Strike Put, Buy Lower Strike Put
Bear Call Spread
Bearish
Theta +
Best Use
Moderately Bearish. Limited Risk credit.
Setup
Sell Lower Strike Call, Buy Higher Strike Call
Bull Call Spread
Bullish
Theta –
Best Use
Moderately Bullish. Cheaper than buying call.
Setup
Buy Lower Strike Call, Sell Higher Strike Call
Bear Put Spread
Bearish
Theta –
Best Use
Moderately Bearish. Cheaper than buying put.
Setup
Buy Higher Strike Put, Sell Lower Strike Put
Short Strangle
Neutral
Theta +
Best Use
Range bound. Profit between strikes.
Setup
Sell OTM Put + Sell OTM Call
Short Straddle
Neutral
Theta +
Best Use
Pure Neutral. Profit max at exact strike.
Setup
Sell ATM Put + Sell ATM Call
Synthetic Long Stock
Bullish
Theta 0
Best Use
Simulate stock ownership with less capital.
Setup
Buy ATM Call + Sell ATM Put
Synthetic Short Stock
Bearish
Theta 0
Best Use
Simulate shorting stock with no borrowing costs.
Setup
Sell ATM Call + Buy ATM Put
Risk Reversal
Bullish
Theta Mixed
Best Use
Bullish. Finance call purchase with put sale.
Setup
Sell OTM Put + Buy OTM Call
Iron Condor
Neutral
Theta +
Best Use
Range bound. Defined risk.
Setup
Bull Put Spread + Bear Call Spread
Long Butterfly
Neutral
Theta +
Best Use
Targeting exact price. Low cost.
Setup
Buy 1 ITM Call, Sell 2 ATM Calls, Buy 1 OTM Call
The Collar
Neutral/Bull
Theta Mixed
Best Use
Protecting existing stock profits.
Setup
Long Stock + Buy OTM Put + Sell OTM Call
BW Butterfly (Puts)
Neutral/Bull
Theta +
Best Use
Directional Butterfly. Route for credit.
Setup
Buy 1 Put, Sell 2 Puts, Buy 1 Put (skipped strike)
BW Butterfly (Calls)
Neutral/Bear
Theta +
Best Use
Bearish/Neutral with no upside risk (if credit).
Setup
Buy 1 Call, Sell 2 Higher Calls, Buy 1 Call (skipped strike)
Calendar Spread
Neutral
Theta +
Best Use
Low vol environment, expecting vol rise.
Setup
Sell Near-term, Buy Long-term (Same Strike)
PM Covered Call
Bullish
Theta +
Best Use
Bullish. Capital Efficient Covered Call.
Setup
Buy Deep ITM Call (Long), Sell OTM Call (Short)
PM Covered Put
Bearish
Theta +
Best Use
Bearish. Capital Efficient Covered Put.
Setup
Buy Deep ITM Put (Long), Sell OTM Put (Short)
Jade Lizard
Neutral/Bull
Theta +
Best Use
Neutral/Slightly Bullish. No Upside Risk.
Setup
Sell Put + Bear Call Spread
Put Ratio Spread
Neutral/Bear
Theta +
Best Use
Slightly Bearish.
Setup
Buy 1 ATM Put, Sell 2 OTM Puts
Call Ratio Spread
Neutral/Bull
Theta +
Best Use
Slightly Bullish.
Setup
Buy 1 ATM Call, Sell 2 OTM Calls
Stock Repair
Neutral/Bull
Theta +
Best Use
Recovering from a losing stock position.
Setup
Long Stock + Buy 1 Call + Sell 2 Higher Calls
Long Strangle
Volatile
Theta –
Best Use
Explosive move expected. Direction unknown.
Setup
Buy OTM Put + Buy OTM Call
Long Straddle
Volatile
Theta –
Best Use
Big move expected. Low IV entry.
Setup
Buy ATM Put + Buy ATM Call
Put Backspread
Very Bearish
Theta –
Best Use
Bearish volatility. Unlimited downside profit.
Setup
Sell 1 ATM Put, Buy 2 OTM Puts
Call Backspread
Very Bullish
Theta –
Best Use
Bullish volatility. Unlimited upside profit.
Setup
Sell 1 ATM Call, Buy 2 OTM Calls
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