Buying an In-The-Money (ITM) call and selling an Out-The-Money (OTM) call. Reduces the cost of entry but caps maximum profit.
Used when you expect the price of the underlying asset to increase.
: Holding stock while selling OTM calls. A staple for income investors.
: Buy an at-the-money (ATM) call and an ATM put with the same strike and expiration. Profits from explosive moves in either direction, typically deployed right before major corporate earnings reports. master 76 option strategies pdf
Buyers pay premium for capped risk and high leverage. Sellers collect premium for high probability of success but capped profit.
: Grant the buyer the right to sell an asset at a set price.
It details strategies like iron condors, calendar spreads, and butterfly spreads for consistent income. Buying an In-The-Money (ITM) call and selling an
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Understanding "spreads" is essential to moving beyond basic buying and selling. A spread involves buying one option and selling another. The Excel workbook in "Master 76 Option Strategies" excels at visualizing the of spreads.
: Buying the right to sell stock. Profits from downward market moves. : Holding stock while selling OTM calls
Complex strategies are typically constructed using four primary building blocks. Mastery of these core concepts is necessary before exploring more advanced frameworks.
Beginner Best for: Sideways to slightly bullish markets.
Selling calls against shares you already own.
: The "Wheel" strategy, used by investors like Warren Buffett, to collect premiums while waiting to buy or sell stocks at desired prices. Essential Lessons for Success
A limited risk, high-reward strategy that benefits from a stock staying near a specific price.
