Part 9 Trading Master Class

Choosing the Right Strategy

Selecting the right options strategy depends on three factors:

Market Outlook:

Bullish → Long Call, Bull Call Spread, Short Put

Bearish → Long Put, Bear Put Spread, Covered Call

Neutral → Iron Condor, Butterfly, Short Straddle

Volatility:

High volatility → Buy options (Straddle, Strangle)

Low volatility → Sell options (Condor, Credit spreads)

Risk Appetite:

Low-risk → Spreads

Medium-risk → Covered/Protective positions

High-risk → Naked calls/puts