Neutral Strategies
Long Put Butterfly
A limited risk, non-directional options strategy that is designed to have a large probability of earning a small limited profit when the future volatility of the underlying is expected to be different from the implied volatility.
Iron Condor
An advanced option trading strategy utilizing two vertical spreads – a Bull Put Spread and a Bear Call Spread with the same expiration. The number of call spreads will be equal to the number of put spreads.
Short Straddle
An options strategy carried out by holding a short position in both a call and a put that have the same strike price and expiration date. The maximum profit is the amount of premium collected by writing the options.
Short Strangle
An options strategy involving the purchase or sale of particular option derivatives that allows the holder to profit based on how much the price of the underlying security moves, with relatively minimal exposure to the direction of price movement.
