Learn institutional Trading Part -5

Option Buying vs Selling
Option Buyers
Pay premium

Unlimited profit, limited risk

Need strong directional movement

Option Sellers (Writers)
Receive premium

Limited profit, unlimited risk

Thrive in sideways or range-bound markets

Need deep knowledge of Greeks and risk management

6. Popular Option Trading Strategies
Beginner Strategies
Long Call/Put – Directional trades

Protective Put – Hedge stock losses

Covered Call – Generate income from holdings

Intermediate Strategies
Bull Call Spread – Buy and sell calls of different strikes

Bear Put Spread – Buy and sell puts

Straddle – Buy both call and put at same strike (high volatility)

Strangle – Buy OTM call and put (cheaper than straddle)

Advanced Strategies
Iron Condor – Neutral strategy with 4 legs

Butterfly Spread – Limited risk range strategy

Calendar Spread – Exploiting time decay differences

Ratio Spread – More contracts sold than bought