"Forex Trading Strategy' A set of analyses that a forex day trader uses to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis charting tools or fundamental, news-based events.
Strategies
Type
Long position
Buying a CALL option or selling a PUT option.
Short position
Selling a CALL option or buying a PUT option.
Mix
Long in stock A and short
in stock B
Bull spreads
Buying a CALL option on a
stock at a certain strike
price and selling a CALL
option on the same stock
with a higher strike price.
With the same expiration
date.
Bear spreads
Buying a CALL option on
stock at a certain strike
price and selling a CALL
option on the same stock
with a lower strike price.
With the same expiration
date.
Butterfly spreads
Open positions in three different strike price.
buying a CALL option with a relatively low strike price – S1
buying a CALL option with a relatively higher strike price – S3
Selling two CALL options with a strike price S2 between S1 and S3
[/list]
Calendar spreads
Selling a CALL option at a
certain strike price and
buying a longer maturity
CALL option with the
same strike price.
Reverse spread
Buying a CALL option at a
certain strike price and
selling a longer maturity
CALL option with the
same strike price.
Diagonal spread
Buying a CALL option on
stock at a certain strike
price and selling a CALL
option on the same stock
with a lower strike price.
With different expiration
dates.
Straddle
Buying a call and put with
the same strike price and
expiration date.
Strip
Buying one call and two
puts with the same strike
price and expiration date.
Strap
Buying two calls and one
put with the same strike
price and expiration date.
Strangle
Buy put and call with
different strike prices with
same expiration date.
Strategies
Type
Long position
Buying a CALL option or selling a PUT option.
Short position
Selling a CALL option or buying a PUT option.
Mix
Long in stock A and short
in stock B
Bull spreads
Buying a CALL option on a
stock at a certain strike
price and selling a CALL
option on the same stock
with a higher strike price.
With the same expiration
date.
Bear spreads
Buying a CALL option on
stock at a certain strike
price and selling a CALL
option on the same stock
with a lower strike price.
With the same expiration
date.
Butterfly spreads
Open positions in three different strike price.
buying a CALL option with a relatively low strike price – S1
buying a CALL option with a relatively higher strike price – S3
Selling two CALL options with a strike price S2 between S1 and S3
[/list]
Calendar spreads
Selling a CALL option at a
certain strike price and
buying a longer maturity
CALL option with the
same strike price.
Reverse spread
Buying a CALL option at a
certain strike price and
selling a longer maturity
CALL option with the
same strike price.
Diagonal spread
Buying a CALL option on
stock at a certain strike
price and selling a CALL
option on the same stock
with a lower strike price.
With different expiration
dates.
Straddle
Buying a call and put with
the same strike price and
expiration date.
Strip
Buying one call and two
puts with the same strike
price and expiration date.
Strap
Buying two calls and one
put with the same strike
price and expiration date.
Strangle
Buy put and call with
different strike prices with
same expiration date.