10 Options Strategies to Know.
10 Options Strategies To Know.
Too often, traders jump into the options game with little or no understanding of how many options strategies are available to limit their risk and maximize return. With a little bit of effort, however, traders can learn how to take advantage of the flexibility and full power of options as a trading vehicle. With this in mind, we've put together this slide show, which we hope will shorten the learning curve and point you in the right direction.
10 Options Strategies To Know.
Too often, traders jump into the options game with little or no understanding of how many options strategies are available to limit their risk and maximize return. With a little bit of effort, however, traders can learn how to take advantage of the flexibility and full power of options as a trading vehicle. With this in mind, we've put together this slide show, which we hope will shorten the learning curve and point you in the right direction.
1. Covered Call.
Aside from purchasing a naked call option, you can also engage in a basic covered call or buy-write strategy. In this strategy, you would purchase the assets outright, and simultaneously write (or sell) a call option on those same assets. Your volume of assets owned should be equivalent to the number of assets underlying the call option. Investors will often use this position when they have a short-term position and a neutral opinion on the assets, and are looking to generate additional profits (through receipt of the call premium), or protect against a potential decline in the underlying asset's value. (For more insight, read Covered Call Strategies For A Falling Market.)
2. Married Put.
In a married put strategy, an investor who purchases (or currently owns) a particular asset (such as shares), simultaneously purchases a put option for an equivalent number of shares. Investors will use this strategy when they are bullish on the asset's price and wish to protect themselves against potential short-term losses. This strategy essentially functions like an insurance policy, and establishes a floor should the asset's price plunge dramatically. (For more on using this strategy, see Married Puts: A Protective Relationship . )
3. Bull Call Spread.
In a bull call spread strategy, an investor will simultaneously buy call options at a specific strike price and sell the same number of calls at a higher strike price. Both call options will have the same expiration month and underlying asset. This type of vertical spread strategy is often used when an investor is bullish and expects a moderate rise in the price of the underlying asset. (To learn more, read Vertical Bull and Bear Credit Spreads.)
4. Bear Put Spread.
The bear put spread strategy is another form of vertical spread​ like the bull call spread. In this strategy, the investor will simultaneously purchase put options at a specific strike price and sell the same number of puts at a lower strike price. Both options would be for the same underlying asset and have the same expiration date. This method is used when the trader is bearish and expects the underlying asset's price to decline. It offers both limited gains and limited losses. (For more on this strategy, read Bear Put Spreads: A Roaring Alternative To Short Selling.)
Investopedia Academy "Options for Beginners"
Now that you've learned a few different options strategies, if you're ready to take the next step and learn to:
Improve flexibility in your portfolio by adding options Approach Calls as down-payments, and Puts as insurance Interpret expiration dates, and distinguish intrinsic value from time value Calculate breakevens and risk management Explore advanced concepts such as spreads, straddles, and strangles.
5. Protective Collar.
A protective collar strategy is performed by purchasing an out-of-the-money put option and writing an out-of-the-money call option at the same time, for the same underlying asset (such as shares). This strategy is often used by investors after a long position in a stock has experienced substantial gains. In this way, investors can lock in profits without selling their shares. (For more on these types of strategies, see Don't Forget Your Protective Collar and How a Protective Collar Works.)
6. Long Straddle.
A long straddle options strategy is when an investor purchases both a call and put option with the same strike price, underlying asset and expiration date simultaneously. An investor will often use this strategy when he or she believes the price of the underlying asset will move significantly, but is unsure of which direction the move will take. This strategy allows the investor to maintain unlimited gains, while the loss is limited to the cost of both options contracts. (For more, read Straddle Strategy A Simple Approach To Market Neutral . )
7. Long Strangle.
In a long strangle options strategy, the investor purchases a call and put option with the same maturity and underlying asset, but with different strike prices. The put strike price will typically be below the strike price of the call option, and both options will be out of the money. An investor who uses this strategy believes the underlying asset's price will experience a large movement, but is unsure of which direction the move will take. Losses are limited to the costs of both options; strangles will typically be less expensive than straddles because the options are purchased out of the money. (For more, see Get A Strong Hold On Profit With Strangles.)
8. Butterfly Spread.
All the strategies up to this point have required a combination of two different positions or contracts. In a butterfly spread options strategy, an investor will combine both a bull spread strategy and a bear spread strategy, and use three different strike prices. For example, one type of butterfly spread involves purchasing one call (put) option at the lowest (highest) strike price, while selling two call (put) options at a higher (lower) strike price, and then one last call (put) option at an even higher (lower) strike price. (For more on this strategy, read Setting Profit Traps With Butterfly Spreads . )
9. Iron Condor.
An even more interesting strategy is the iron condor. In this strategy, the investor simultaneously holds a long and short position in two different strangle strategies. The iron condor is a fairly complex strategy that definitely requires time to learn, and practice to master. (We recommend reading more about this strategy in Take Flight With An Iron Condor, Should You Flock To Iron Condors? and try the strategy for yourself (risk-free!) using the Investopedia Simulator.)
10. Iron Butterfly.
The final options strategy we will demonstrate here is the iron butterfly. In this strategy, an investor will combine either a long or short straddle with the simultaneous purchase or sale of a strangle. Although similar to a butterfly spread, this strategy differs because it uses both calls and puts, as opposed to one or the other. Profit and loss are both limited within a specific range, depending on the strike prices of the options used. Investors will often use out-of-the-money options in an effort to cut costs while limiting risk. (To learn more, read What is an Iron Butterfly Option Strategy?)

Option Pricing Spreadsheet.
My option pricing spreadsheet will allow you to price European call and put options using the Black and Scholes model.
Understanding the behavior of option prices in relation to other variables such as underlying price, volatility, time to expiration etc is best done by simulation. When I was first learning about options I began building a spreadsheet to help me understand the payoff profiles of calls and puts and also what the profiles look like of different combinations. I've uploaded my workbook here and you're welcome to it.
Simplified.
On the "basic" worksheet tab you will find a simple option calculator that generates fair values and option Greeks for a single call and put according to the underlying inputs you select. The white areas are for your user input while the shaded green areas are the model outputs.
Implied Volatility.
Underneath the main pricing outputs is a section for calculating the implied volatility for the same call and put option. Here, you enter the market prices for the options, either last paid or bid/ask into the white Market Price cell and the spreadsheet will calculate the volatility that the model would have used to generate a theoretical price that is in-line with the market price i. e. the "implied" volatility.
Payoff Graphs.
The PayoffGraphs tab gives you the profit and loss profile of basic option legs; buy call, sell call, buy put and sell put. You can change the underlying inputs to see how your changes effect the profit profile of each option.
Strategies.
The Strategies tab allows you to create option/stock combinations of up to 10 components. Again, use the while areas for your user input while the shaded areas are for the model outputs.
Theoretical and Greek Prices.
Use this Excel formula for generating theoretical prices for either call or put as well as the option Greeks:
A Sample formula would look like =OTW_BlackScholes(c, p, 25, 26, 0.25, 0.05, 0.21, 0.015) .
Implied Volatility.
Same inputs as above except:
Market Price The current market last, bid/ask of the option.
Example: =OTW_IV(p, 100, 100, 0.74, 0.05, 8.2, 0.01)
If you're having troubles getting the formulas to work, please check out the support page or send me an .
If you're after an online version of an option calculator then you should visit Option-Price.
Just to note that much of what I have learnt that made this spreadsheet possible was taken from the highly acclaimed book on financial modeling by Simon Benninga - Financial Modeling - 3rd Edition.
If you're an Excel junkie, you'll love this book. There are loads of real world problems that Simon solves using Excel. The book also comes with a disk that contains all the exercises Simon illustrates. You can find a copy of Financial Modeling at Amazon of course.
Option Pricing Option Workbook XLS Black and Scholes Binomial Model Quick Pricing Formula Option Greeks Greeks Overview Option Delta Option Gamma Option Theta Option Vega Option Rho Option Charm.
Comments (112)
Peter February 19th, 2017 at 4:47pm.
Luciano February 19th, 2017 at 11:27am.
2) How do I calculate the greeks of a multiple legs strategy? E. g.Is the "total" delta the sum of the single legs deltas?
Peter January 12th, 2017 at 5:23pm.
Mike C January 12th, 2017 at 6:26am.
Peter December 14th, 2016 at 4:57pm.
Clark December 14th, 2016 at 4:12am.
What are the up/down arrows supposed to do on strategies page?
Peter October 7th, 2014 at 6:21am.
Denis October 7th, 2014 at 3:07am.
Peter June 10th, 2014 at 1:09am.
Jack Ford June 9th, 2014 at 5:32am.
In the Option Trading Workbook. xls OptionPage.
I changed the underling price and strike price to calculate the IV,
24-Nov-11 Today's Date.
30.00% Historical Volatility.
19-Dec-11 Expiry Date.
3.50% Risk Free Rate.
2.00% Dividend Yield.
0.07 DTE in Years.
Strike Prices Price Price Volatility.
6,100.00 ITM 912.98 999.00 57.3540%
6,100.00 ITM 912.98 912.98 30.0026%
6,100.00 ITM 912.98 910.00 27.6299%
6,100.00 ITM 912.98 909.00 26.6380%
6,100.00 ITM 912.98 0.0038%
6,100.00 ITM 912.98 907.00 24.0288%
6,100.00 ITM 912.98 906.00 21.9460%
6,100.00 ITM 912.98 905.00 0.0038%
6,100.00 ITM 912.98 904.00 0.0038%
6,100.00 ITM 912.98 903.00 0.0038%
6,100.00 ITM 912.98 902.00 0.0038%
the IV was changed so dramatically?
I like your web and excel workbook very much, they are the best in the.
Thank you very much!
Peter January 10th, 2014 at 1:14am.
cdt January 9th, 2014 at 10:19pm.
I tried the spreadsheet in Openoffice, but it did not work. Does that use Macros or imbedded functions?
Ravi June 3rd, 2013 at 6:40am.
Can you please let me know how we can calculate Risk Free Rate in case of USDINR Currency Pair or any other pair in general.
Peter May 28th, 2013 at 7:54pm.
max May 24th, 2013 at 8:51am.
Hello, what a great file!
Peter April 30th, 2013 at 9:38pm.
wong April 28th, 2013 at 9:05pm.
hi, thanks for the worksheet. However, I am troubled by the calculated P/L on expiration. It should be made of two straight lines, joined at the strike price, right? but I did not get that. For example, for a put with strike $9, premium used is $0.91, the P/L for underlying price of 7, 8, 9, 10 were 1.19, 0.19, -0.81, -0.91, when they should be 1.09, 0.09, -0.91, -0,91, isn't that correct?
Peter April 15th, 2013 at 7:06pm.
Mmm. the average volatility is mentioned in cell B7 but not graphed. I didn't want to graph it as it would just be a flat line across the graph.
Ryan April 12th, 2013 at 9:11am.
Sorry, I reread my question and it was confusing.. I'm just wondering if there is a way to also throw in Avg Volatility into the graph?
Peter April 12th, 2013 at 12:35am.
Ryan April 10th, 2013 at 6:52pm.
Peter March 21st, 2013 at 6:35am.
Desmond March 21st, 2013 at 3:16am.
can i know the formular in deriving the Theoretical Price in the basic tab.
Peter December 27th, 2012 at 5:19am.
Steve December 16th, 2012 at 1:22pm.
Terrific spreadsheets - thanks much!
Peter October 29th, 2012 at 11:05pm.
Vlad October 29th, 2012 at 9:43pm.
Stock Price $40.0.
Interest Rate 3.0%
Expiration in 1.0 month(s) 0.1.
Theta -2.06 -0.0056.
Peter June 4th, 2012 at 12:34am.
zoran June 1st, 2012 at 11:26pm.
Hello, as I am new in trading options on futures please explain to me how to calculate margin, or daily premium, on Dollar Index, as I saw on the ICE Futures US web page, that the margin for the straddle is only 100 Dollars. It is so cheap that if I bought call and put options with the same strike, and form the straddle, it is look profitable to exercise early one leg of the position? I have in my account 3000 dollars.
Peter May 21st, 2012 at 5:32am.
Peter April 3rd, 2012 at 7:08pm.
Darong April 3rd, 2012 at 3:41am.
I have a quick question as I just started to study Options.
For VWAP, normally, do option traders calculate it by themselves or tend to refer to calculated value by information vendors, or etc.? I want to know about market convention from traders' perspectives as a whole for option trading.
Appreciate if you revert to me.
pintoo yadav March 29th, 2012 at 11:49am.
this is program in well mannered but required macros to be enabled for its work.
Peter March 26th, 2012 at 7:42pm.
Amitabh March 15th, 2012 at 10:02am.
madhavan March 13th, 2012 at 7:07am.
First time I am going through any useful write up on option trading. Liked very much. But have to make an indepth study to enter into trading.
Jean charles February 10th, 2012 at 9:53am.
Peter January 31st, 2012 at 4:28pm.
Do you mean an example of the code? You can see the code in the spreadsheet. It is also written on the Black Scholes page.
dilip kumar January 31st, 2012 at 3:05am.
Peter January 31st, 2012 at 2:06am.
You can open the VBA editor to see the code used to generate the values. Alternatively you can look at the examples on the black scholes model page.
iqbal January 30th, 2012 at 6:22am.
Peter January 26th, 2012 at 5:25pm.
Hi Amit, is there an error that you can provide? What OS are you using? Have you seen the Support Page?
amit January 25th, 2012 at 5:56am.
The workbook is not opening.
sanjeev December 29th, 2011 at 10:22pm.
thanks for the workbook.
P December 2nd, 2011 at 10:04pm.
Good day. Indian man trading today Found spreadsheet but does work? Look at it and needs fix to fix problem?
akshay November 29th, 2011 at 11:35am.
Deepak November 17th, 2011 at 10:13am.
Peter November 16th, 2011 at 5:12pm.
Deepak November 16th, 2011 at 9:34am.
Peter October 30th, 2011 at 6:11am.
NEEL 0512 October 30th, 2011 at 12:36am.
HI PETER GOOD MORNING.
Peter October 5th, 2011 at 10:39pm.
Ok, I see now. In Open Office you must first have JRE installed - Download Latest JRE.
Peter October 5th, 2011 at 5:47pm.
After you have enabled Macros, save the document and re-open it.
Kyle October 5th, 2011 at 3:24am.
Yes, was receiving a $MARCOS? and $NAME? error. I have enabled the marcos, but still getting the $NAME? error. Thanks for your time.
Peter October 4th, 2011 at 5:04pm.
Yes, it should work. Are you having troubles with Open Office?
Kyle October 4th, 2011 at 1:39pm.
I was wondering if this spreadsheet can be opened with open office? If so how would i go about this?
Peter October 3rd, 2011 at 11:11pm.
NK October 1st, 2011 at 11:59am.
Hi, i'm new to options. I'm calculating the Call and Put premiums for TATASTEEL(I used American Style options calculator). Date - 30 Sept, 2011.
Strike price - 400.
Interest rate - 9.00%
Volatility - 37.28%(I got this from Khelostocks)
Expiration Date - 25 Oct.
Also plz tell me what to put for Interest rate and from where to get the volatility for particular stocks in calculation.
CALL - 27 PUT - 17.40.
Why is there such a difference and what should be my trading strategy in these?
Peter September 8th, 2011 at 1:49am.
Yes, it is for European options so it will suit the Indian NIFTY index options but not the stock options.
Mehul Nakar September 8th, 2011 at 1:23am.
is this File Made in European style or American style option.
as Indian OPTIONS are trading in American style.
can u make it American style model for Indian market user.
Mahajan September 3rd, 2011 at 12:34pm.
Peter September 3rd, 2011 at 6:05am.
Peter September 3rd, 2011 at 6:03am.
Gina September 2nd, 2011 at 3:04pm.
If you look at Dec 2011 PUTs for netflix - I have a put spread - short 245 and long 260 - why doesn't this reflect a profit of 15 instead of 10?
Mahajan September 2nd, 2011 at 6:58am.
Peter August 26th, 2011 at 1:41am.
Edwin CHU (HK) August 26th, 2011 at 12:59am.
I am an active options trader with my own trade boob, I find your worksheet "Options Strategies quite helpful, BUT, can it cater for calendar spreads, I caanot find a clue to insert my positions when faced with options and fut contracts of different months?
Look forward to hearing from you soon.
Peter June 28th, 2011 at 6:28pm.
Sunil June 28th, 2011 at 11:42am.
on which mail id should i send ?
Peter June 27th, 2011 at 7:07pm.
Hi Sunil, send me an and we can take it the conversation offline.
Sunil June 27th, 2011 at 12:06pm.
Hi Peter, many thanks. I had gone through the VB functions but they use many inbuild excel functions for calculations. I wanted to write the program in Foxpro (old time language) which does not have the inbuild functions in it and hence was looking for basic logic in it. Never the less, the excel is also very useful, which i don't think anyone else has also shared on any site.
Peter June 27th, 2011 at 6:06am.
Hi Sunil, for Delta and Implied Volatility the formulas are included in the Visual Basic provided with the spreadsheet at the top of this page. For Historical Volatility you can refer to the page on this site on calculating volatility. However, I am not sure on the profit probability - do you mean the probability that the option will expire in the money?
Sunil June 26th, 2011 at 2:24am.
How do i calculate the following. I want to write a program to run it on various stocks at a time and do first level scanning.
2. Implied volatility.
3. Historical Volatility.
4. Profit Probability.
Peter June 18th, 2011 at 2:11am.
Pop up? What do you mean?
shark June 17th, 2011 at 2:25am.
where is the pop up.
Peter June 4th, 2011 at 6:46am.
DevRaj June 4th, 2011 at 5:55am.
Very useful nice article and the excel is very good.
Still one question.
How to calculate volatility using (option price, spot price, time )
Satya May 10th, 2011 at 6:55am.
Peter March 28th, 2011 at 4:43pm.
It works for any European option - irrespective of the country where the options are traded.
Emma March 28th, 2011 at 7:45am.
Do you have it for Irish stocks.
Peter March 9th, 2011 at 9:29pm.
Hi Karen, those are some great points!
Karen Oates March 9th, 2011 at 8:51pm.
Is your option trading not working because you haven't found that right system yet or because you won't stick to one system?
Peter January 20th, 2011 at 5:18pm.
Sure, you can use implied volatility if you like. But the point of using a pricing model is for you have your own idea of volatility so you know when the market is "implying" a value different to your own. Then, you are in a better position to determine if the option is cheap or expensive based on historical levels.
t castle January 20th, 2011 at 12:50pm.
The Greeks that are calculated on the OptionPage tab of OptionTradingWorkbook. xls appear to be dependent on Historical Volatility. Should not the Greeks be determined by Implied Volatility? Comparing the values of the Greeks calculated by this workbook produces values that agree with, e. g., the values at TDAmeritrade or ThinkOrSwim only if the formulas are edited to replace HV with IV.
Peter January 20th, 2011 at 5:40am.
Not yet - do you have any examples you can suggest? What pricing model do they use?
r January 20th, 2011 at 5:14am.
anything available for interest rate options?
Peter January 19th, 2011 at 8:48pm.
It is the expected volatility that the underlying will realize from now until the expiration date.
general question January 19th, 2011 at 5:13pm.
hi, is the historical volatility input annualized vol, or vol for the period from today to expiration date? thanks.
imlak January 19th, 2011 at 4:48am.
very good, it solved my proble.
SojaTrader January 18th, 2011 at 8:50am.
very happy with the spreadsheet.
thanks and regards from Argentina.
Peter December 19th, 2010 at 9:30pm.
Hi Madhuri, do you have Macros enabled? Please see the support page for details.
madhuri December 18th, 2010 at 3:27am.
same opinion i have about the spread sheet that.
"this model doesn't work, no matter what you put in on the basic page for values, it has an invalid name error (#name?) for all the results cells. Even when you first open the thing, the default values the creator put in don't even work"
MD November 25th, 2010 at 9:29am.
Is these formulas will work for indian market? Please answer.
rick November 6th, 2010 at 6:23am.
Do you have it for US stocks.
egress63 November 2nd, 2010 at 7:19am.
Excellent stuff. Finally a good site with a simple and easy to use spreadsheet!
Dinesh October 4th, 2010 at 7:55am.
Guys, this works and it is pretty easy. Just enable macros in excel. The way it has been put is very simple and with little understnading of Options any one can use it. Great work specially Option Strategies & Option Page.
Peter January 3rd, 2010 at 5:44am.
The shape of the graphs is the same but the values are different.
robert January 2nd, 2010 at 7:05am.
All graph in Theta sheet are identic. Are Call Oprion Price graph data correct? thx.
daveM January 1st, 2010 at 9:51am.
The thing opened immediately for me, works like a charm. and the Benninga book. I am so pleased that you referenced it.
Peter December 23rd, 2009 at 4:35pm.
Hi Song, do you have the actual formula for Asian options?
Song December 18th, 2009 at 10:30pm.
I need your help about the Asian option pricing using excel vba. I don't know how to write the code.
Peter November 12th, 2009 at 6:01pm.
Does the spreadsheet not work with OpenOffice?
Wondering November 11th, 2009 at 8:09am.
Any solutions that will work with OpenOffice?
rknox April 24th, 2009 at 10:55am.
Very Cool! Very nicely done. You sir, are an artist. One old hacker (76 years old - started on the PDP 8) to another.
Peter April 6th, 2009 at 7:37am.
Ken April 6th, 2009 at 5:21am.
Hi, What if i am using the Office on Mac? it has an invalid name error (#name?) for all the results cells. thx.
giggs April 5th, 2009 at 12:14pm.
Ok, it's working now. I saved & closed the excel file, opened again, and the results were there, in the blue areas! FYI, I had enabled all the macros in "Security of the macros" . Can't wait to play with the file now.
giggs April 5th, 2009 at 12:06pm.
I don't see the popup. I use Excel 2007 under Vista. The presentation is quite different from the previous versions. I enabled all macros. But I still get the #name error. Any idea?
giggs April 5th, 2009 at 12:00pm.
I don't see the popup. I use Excel 2007 under Vista. The presentation is quite different from the previous versions. Any idea?
Admin March 23rd, 2009 at 4:17am.
disappointed March 22nd, 2009 at 4:25pm.
this model doesn't work, no matter what you put in on the basic page for values, it has an invalid name error (#name?) for all the results cells. Even when you first open the thing, the default values the creator put in don't even work.

Options trading strategies xls

Renko Chart Day Trading Strategies.
Options Profit Graph For Price Changes Before Expiration.
This worksheet for our options trading spreadsheet is an addition to the price to expiration profit graphs, where it will also give the profit curvature for the date of the options trade, along with any other date before expiration. This is very useful, considering that most single options are not held to expiration, especially when they are long option trades.
Options Pricing Spreadsheet For Theoretical Values And Greeks.
The GreeksChain worksheet for our options trading spreadsheet will give a calls and puts price chain for theoretical value and greeks, made from our user inputs for underlying price, volatility, and days to expiration. Additionally, there is a calls and puts profit section for doing whatif scenarios and position adjustments.
Stock Options Trade Position Comparison Spreadsheet.
The stock options position comparison spreadsheet will take 2 different positions and give the risk reward for both overlaid on the same profit graph. This worksheet is especially useful for doing whatif modeling for different options position types or entry prices.
Option Position Spreadsheet For Graphing Current Profits.
OptPos [option position] trading worksheet video showing how it is used for entering option trades and positions to get both a graph showing profit at expiration, as well as current profit at any given date, based on the change in theoretical value of the position.
Stock Option Position Profit Spreadsheet.
Options trading spreadsheet video that discusses the StkOpt worksheet that can plot the stock option position profit at expiration, along with also plotting a stock trade only position for comparison.
Options Price And Greeks Change In A 30 Day Period.
Options trading spreadsheet video that discusses the GreeksChg worksheet and how theoretical value and the option greeks change over a 30 day period, including the differences that occur from changes in the underlying and/or volatility.
Options Trading Pricing Formula Inputs And Outputs.
Options trading spreadsheet video that discusses the greeks worksheet inputs and outputs, especially with regards to the volatility input and what number to use. There is further discussion on ways that this worksheet can be used for projections and trading decisions.
Options Trading Spreadsheet Download.
Download link for microsoft excel options trading spreadsheet file.
Risk Disclosure.
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure.
Hypothetical performance results have many inherent limitations, some of which may described in the content on this site. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.

Spreadsheet: Option Trading Strategies.
Download this free spreadsheet to form various option strategies and view their payoff diagrams.
The spreadsheet allows you to create option strategies by combining long and short positions in stocks, call options and put options.
You can select unto 3 call options and 3 put options. For example, to create a short covered call, buy a stock (long stock), and sell a call option (short call). To create a long covered put, buy a stock, and buy a put option.
Download the Option Trading Strategies Spreadsheet – This spreadsheet helps you create any option strategy and view its profit and loss, and payoff diagram.
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