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Options Strategy Guide

The Options Strategy Guide is an educational tool that can help you learn about a variety of options strategies. The guide includes explanations of each strategy, max profit, max risk, profit/loss diagrams, and much more. You can filter by outlook, profit, and risk; making it easier to find the strategy or strategies you're interested in. Options are one of the more versatile investment choices available. Options may not be appropriate for all investors, with more versatility comes additional risk.

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By Outlook	By Profit	By Risk	Title	Outlook	Profit	Risk

All Options Strategies

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By Outlook By Outlook BearishBearish,BullishBearish,Bullish,NeutralBearish,NeutralBullishBullish,NeutralNeutral By Profit By Profit LimitedSubstantialUnlimited By Risk By Risk LimitedLimited,SubstantialLimited,UnlimitedSubstantialUnlimited Title Title Outlook Outlook Profit Profit Risk Risk
By Outlook	By Profit	By Risk	Title	Outlook	Profit	Risk
Neutral	Limited	Substantial	1x2 ratio vertical spread with puts 1x2 ratio vertical spread with puts A 1x2 ratio vertical spread with puts is created by buying one higher-strike put and selling two lower-strike puts.	Neutral	Limited	Substantial
Bearish	Substantial	Limited	1x2 ratio volatility spread with puts 1x2 ratio volatility spread with puts A 1x2 ratio volatility spread with puts is created by selling one higher-strike put and buying two lower-strike puts.	Bearish	Substantial	Limited
Bearish,Neutral	Limited	Limited	Bear call spread Bear call spread A bear call spread consists of one short call with a lower strike price and one long call with a higher strike price.	Bearish,Neutral	Limited	Limited
Bearish	Limited	Limited	Bear put spread Bear put spread A bear put spread consists of one long put with a higher strike price and one short put with a lower strike price.	Bearish	Limited	Limited
Bearish	Substantial	Unlimited	Bearish split-strike synthetic Bearish split-strike synthetic A bearish split-strike synthetic position consists of one long put with a lower strike price and one short call with a higher strike price.	Bearish	Substantial	Unlimited
Bullish	Limited	Limited	Bull call spread Bull call spread A bull call spread consists of one long call with a lower strike price and one short call with a higher strike price.	Bullish	Limited	Limited
Bullish,Neutral	Limited	Limited	Bull put spread Bull put spread A bull put spread consists of one short put with a higher strike price and one long put with a lower strike price.	Bullish,Neutral	Limited	Limited
Bearish,Bullish,Neutral	Limited	Limited	Collar (long stock + long put + short call) Collar (long stock + long put + short call) A collar position is created by buying (or owning) stock and by simultaneously buying protective puts and selling covered calls on a share-for-share basis.	Bearish,Bullish,Neutral	Limited	Limited
Bullish,Neutral	Limited	Substantial	Covered straddle (long stock + short A-T-M call + short A-T-M put) Covered straddle (long stock + short A-T-M call + short A-T-M put) A covered straddle position is created by buying (or owning) stock and selling both an at-the-money call and an at-the-money put.	Bullish,Neutral	Limited	Substantial
Bullish,Neutral	Limited	Substantial	Covered strangle: (long stock + short OOM call + short OOM put) Covered strangle: (long stock + short OOM call + short OOM put) A covered strangle position is created by buying (or owning) stock and selling both an out-of-the-money call and an out-of-the-money put.	Bullish,Neutral	Limited	Substantial
Neutral	Limited	Limited	Double diagonal spread Double diagonal spread A double diagonal spread is created by buying one “longer-term” straddle and selling one “shorter-term” strangle.	Neutral	Limited	Limited
Neutral	Limited	Limited	Long butterfly spread with calls Long butterfly spread with calls A long butterfly spread with calls is a three-part strategy that is created by buying one call at a lower strike price, selling two calls with a higher strike price and buying one call with an even higher strike price.	Neutral	Limited	Limited
Neutral	Limited	Limited	Long butterfly spread with puts Long butterfly spread with puts A long butterfly spread with puts is a three-part strategy that is created by buying one put at a higher strike price, selling two puts with a lower strike price and buying one put with an even lower strike price.	Neutral	Limited	Limited
Neutral	Limited	Limited	Long calendar spread with calls Long calendar spread with calls A long calendar spread with calls is created by buying one “longer-term” call and selling one “shorter-term” call with the same strike price.	Neutral	Limited	Limited
Neutral	Limited	Limited	Long calendar spread with puts Long calendar spread with puts A long calendar spread with puts is created by buying one “longer-term” put and selling one “shorter-term” put with the same strike price.	Neutral	Limited	Limited
Bullish	Unlimited	Limited	Long call - cash backed Long call - cash backed In return for paying a premium, the buyer of a call gets the right (not the obligation) to buy the underlying stock at the strike price at any time until the expiration date.	Bullish	Unlimited	Limited
Bullish	Unlimited	Limited	Long call - speculative Long call - speculative In return for paying a premium, the buyer of a call gets the right (not the obligation) to buy the underlying instrument at the strike price at any time until the expiration date.	Bullish	Unlimited	Limited
Neutral	Limited	Limited	Long Christmas tree spread variation with calls Long Christmas tree spread variation with calls A long Christmas tree spread variation with calls is a three-part strategy involving six calls.	Neutral	Limited	Limited
Bearish,Bullish	Limited	Limited	Long Christmas tree spread variation with puts Long Christmas tree spread variation with puts A long Christmas tree spread variation with puts is a three-part strategy involving six puts.	Bearish,Bullish	Limited	Limited
Neutral	Limited	Limited	Long Christmas tree spread with calls Long Christmas tree spread with calls A long Christmas tree spread with calls is a three-part strategy involving six calls.	Neutral	Limited	Limited

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Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized OptionsOpens in a new window. Supporting documentation for any claims, if applicable, will be furnished upon request.

There is an Options Regulatory Fee that applies to both option buy and sell transactions. The fee is subject to change. See Fidelity.com/commissions for details.

There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.

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Fidelity Learning Center: Options Strategy Guide

Fidelity Learning Center: Options Strategy Guide

All Options Strategies

All Options Strategies

Options Strategy Guide