Bullish options strategies are employed when the options trader expects the underlying stock price to move higher. You can also use Theta (time decay) with a bullish/bearish combination called Calendar Spread when sideways movement is expected. The trader can also predict how high the stock price might go and what timeframe the rally might take place in order to select the optimal trading strategy for buying a bullish option. The most bullish options trading strategy used by most options traders is simply to buy a call option. The market is always in motion. It is up to the trader to figure out which strategy suits the markets for that period. Moderately bullish options traders typically set a bull run target price and use bull spreads to reduce costs or eliminate risk entirely. There are limited risk trading options by using the appropriate strategy. While the maximum profit for some of these strategies is capped, they typically cost less to use for a given notional amount of exposure. There are options that have unlimited upside or downside potential with limited risk if done right. The bull call spread and bull put spread are common examples of moderately bullish strategies. Slightly bullish trading strategies are options that make money as long as the price of the underlying asset does not fall to the strike price by the option's expiry date.These strategies can also provide protection against losses. Writing out-of-the-money covered calls is a good example of such a strategy. The buyer of the covered call pays a premium for the call option at the strike price (rather than the market price) of the assets you already own. This is how traders hedge a stock they own if it has performed against them for a period of time.
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