Intermediate
Long straddles and strangles around uncertain moves
A long straddle or strangle buys exposure to a large move in either direction. The move must still overcome the combined premium and trading costs.
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Options Trading Guide
Understand calls and puts, analyse option prices and build strategies for direction, income and protection. Follow ten stages from contract basics to advanced structures and disciplined trade management.
Start with Calls and puts from both sides of the contract, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Volatility and Range Strategies · All lessons
Volatility and Range Strategies
Study straddles, calendars, butterflies and iron condors across price and time.
Intermediate
Calendar spreads and changing volatility across time
A calendar spread trades differences between expirations. Its value at the first expiry depends on what remains in the later option.
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Intermediate
Butterfly spreads and the cost of a narrow target
A long butterfly concentrates its largest expiration payoff near a central strike. A low entry cost comes with a narrow target and several execution costs.
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Intermediate
Iron condors and iron butterflies with defined wings
Iron condors and iron butterflies combine put and call spreads. Protective wings bound the combined expiration payoff but do not remove management risk.
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