All About Options Trading Strategies in Stock Market

Spreads and ratio structures

This guide covers the main options strategies traders use in the stock market. It starts with bull and bear spreads and the call and put ratio backspreads, which shape a position around a view on the direction and size of a move.

Straddles, strangles and synthetics

Straddles and strangles are presented as ways to trade volatility, while the iron condor and synthetic positions show how several legs combine into one payoff. Max Pain and the PCR ratio are included as data points that many traders watch.

Reading the strategies

• Sketch the payoff of each structure before reading its rules.
• Check how Max Pain and PCR move around expiry in a live chart.
• Treat the data points as context rather than signals.