WHAT IS OPTION STRATEGY ??

Options strategies are the simultaneous and often mixed buying or selling of one or more options that differ in one or more of the option variables. Call options, simply called calls, give the buyer the right to buy a specific stock at that option's strike price. In contrast, put options, simply called puts, give the buyer the right to sell a particular stock at the option's strike price. This is often done to expose oneself to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very simple strategy could be simply buying or selling a single option; However, options strategies often refer to a combination of buying and/or selling options at the same time. Options strategies allow traders to profit from movements in underlying assets based on market sentiment (i.e. bullish, bearish or neutral). Neutral strategies can be further divided into those that are bullish on volatility, and those that are bearish on volatility. Traders can also benefit from time decay, when the stock market is experiencing low volatility. The options positions used can be long and/or short positions in calls and puts.