An Option Strategy is a specific plan of action to make the decision of Buying or Selling an Option Contract, by combining various Options positions in a specific way, Option Strategy on the Choice FinX is a collection of multiple scrip calls in a single strategy for Option Combination. This Option Strategy is created by the Choice Research team with their algorithmic trading ideas. An Option Strategy aims to achieve a particular result, such as income or protection against potential losses. Depending on the goals and risk tolerance, there are numerous different Option Strategy. Some examples of Option Strategies include:
- Bull call spread: This strategy involves buying a call option with a lower strike price and selling a call option with a higher strike price in order to profit from a moderate increase in the underlying asset's price.
- Bear put spread: This strategy involves buying a put option with a lower strike price and selling a put option with a higher strike price in order to profit from a moderate decrease in the underlying asset's price.
These are only a few examples of Option Strategy.