A²PT · Strategy Learning Hub
Strategies, unpacked.
156 strategies. Learn the idea through a story, see the mechanics, then test the payoff against real observations.
Start with Covered call156strategies
one at a time
- 001Options & payoff structures
Covered call
Hold a share and sell a call on that same share. You collect a premium; in return, your gains above the strike price are capped.
- 002Hedging & risk management
Protective put
Own the share and buy a put. The put gives you the right to sell at its strike, limiting the loss below that level while leaving upside open.
- 003Options & payoff structures
Vertical spread
Buy one option and sell another of the same type and expiry at a different strike. The short leg helps pay for the long leg, while capping both risk and reward.
- 004Options & payoff structures
Synthetic forward
Buy a call and sell a put at the same strike and expiry. Their combined payoff is forward-like, while rates and option premiums determine the fair forward level.
- 005Options & payoff structures
Risk reversal／combo
A bullish risk reversal buys an out-of-the-money call and sells an out-of-the-money put. The sale can reduce the premium, but it adds real downside exposure.
- 006Options & payoff structures
Ladder spread
A bull call ladder buys one lower-strike call and sells calls at two higher strikes. It can create a profit plateau, then lose without a fixed limit above the top strike.
- 007Options & payoff structures
Calendar／diagonal spread
Buy a longer-dated option and sell a shorter-dated option of the same type. A calendar uses the same strike; a diagonal also changes the strike.
- 008Volatility
Long straddle／strangle
Buy a call and a put with the same expiry. A straddle uses the same strike; a strangle uses a lower put strike and a higher call strike. At expiry, price must move beyond the combined premium to profit.
- 009Volatility
Short straddle／strangle
Sell a call and a put with the same expiry. A straddle shares one strike; a strangle places the put lower and call higher. Maximum profit is limited to net premium while extreme moves can cause large losses.
- 010Options & payoff structures
Ratio spread／backspread
Buy and sell unequal numbers of options with the same expiry and type. Selling more can reduce the debit but leave uncapped risk; a backspread usually buys more options and trades a middle loss zone for tail exposure.
- 011Options & payoff structures
Butterfly／condor
A butterfly often uses three strikes in a +1, −2, +1 ratio; a condor typically uses four strikes to widen the middle. Long debit structures usually have limited risk and reward; short and iron structures reverse the exposure.
- 012Arbitrage & relative value
Box spread
A box combines a bull call spread with the matching bear put spread: same strikes, same expiry. Its expiry payment is fixed, so the entry debit implies a financing rate.