Options Strategies Explained
Every EasyTrade signal uses one of these five premium-selling strategies. Learn how each one works, when it fits the market, what you can make and lose, and how the trade plays out on a price chart - before you place your first trade.
Bull Put Spread
Sell a put and buy a lower put to collect a credit. Profits if the stock stays above your short strike, with capped risk.
Bear Call Spread
Sell a call and buy a higher call to collect a credit. Profits if the stock stays below your short strike, with capped risk.
Iron Condor
A bull put spread plus a bear call spread. Profits if the stock stays inside a range, with capped risk on both sides.
Covered Call
Own 100 shares and sell a call above the price. Earn premium income, but give up gains above the strike.
Cash Secured Put
Sell a put and set aside cash to buy the shares. Get paid while you wait for a lower entry price.