⚠️ Options involve significant risk and are not suitable for all investors. Before trading options, read the OCC Characteristics and Risks of Standardized Options. Educational only; not investment advice. Examples ignore commissions, taxes, and early assignment unless stated.
Options Strategy Comparison Table
All 16 strategies on MarketWrench in one table. Use it to narrow down which strategies fit your view of the stock, then open a strategy for its payoff chart and worked example.
How to read this table. Outlook is what you think the stock will do. IV (implied volatility) is how expensive options are right now: strategies that sell options usually prefer high IV, and strategies that buy options prefer low IV. Debit means you pay to open the trade; credit means you collect money up front. Max loss is the most you can lose if you hold to expiration. Not sure where to start? Try the strategy finder or print the cheat sheet.
| Strategy | Outlook | IV | Debit / credit | Max profit | Max loss | Level | Capital |
|---|---|---|---|---|---|---|---|
| Covered Call Own 100 shares + sell 1 call | Neutral to bullish | Better when IV is high | Credit (you collect) | Limited: (strike − stock cost) + premium | Large: stock can fall to $0 (cushioned by premium) | Beginner | Needs shares or cash for 100 shares |
| Cash-Secured Put Sell 1 put, hold cash for 100 shares | Neutral to bullish | Better when IV is high | Credit (you collect) | Limited: the premium | Large: strike − premium if stock goes to $0 | Beginner | Needs shares or cash for 100 shares |
| Long Call Buy 1 call | Bullish | Better when IV is low | Debit (you pay) | Unlimited | Premium paid | Beginner | Small (defined risk) |
| Long Put Buy 1 put | Bearish | Better when IV is low | Debit (you pay) | Large: strike − premium (stock to $0) | Premium paid | Beginner | Small (defined risk) |
| Protective Put Own 100 shares + buy 1 put | Bullish | Better when IV is low | Debit (you pay) | Unlimited (minus put cost) | Stock cost − put strike + premium | Beginner | Needs shares or cash for 100 shares |
| Collar Own shares + buy put + sell call | Neutral to bullish | Works in most IV | Debit or credit | Limited: up to the call strike | Limited: down to the put strike | Intermediate | Needs shares or cash for 100 shares |
| Bull Call Spread Buy lower call + sell higher call | Bullish | Better when IV is low | Debit (you pay) | Strike width − debit | Net debit | Intermediate | Small (defined risk) |
| Bear Put Spread Buy higher put + sell lower put | Bearish | Better when IV is low | Debit (you pay) | Strike width − debit | Net debit | Intermediate | Small (defined risk) |
| Bull Put Credit Spread Sell higher put + buy lower put | Neutral to bullish | Better when IV is high | Credit (you collect) | Net credit | Strike width − credit | Intermediate | Small (defined risk) |
| Bear Call Credit Spread Sell lower call + buy higher call | Neutral to bearish | Better when IV is high | Credit (you collect) | Net credit | Strike width − credit | Intermediate | Small (defined risk) |
| Iron Condor Bull put spread + bear call spread | Neutral (range) | Better when IV is high | Credit (you collect) | Net credit | Wider spread width − credit | Advanced | Small (defined risk) |
| Long Call Butterfly Buy 1 low call, sell 2 middle, buy 1 high | Neutral (range) | Better when IV is high | Debit (you pay) | Middle − lower strike − debit | Net debit | Advanced | Small (defined risk) |
| Calendar Spread Sell near-term call + buy later call, same strike | Neutral (range) | Better when IV is low | Debit (you pay) | Varies; best near the strike at the first expiration | Net debit (roughly) | Advanced | Small (defined risk) |
| Poor Man's Covered Call Buy deep ITM LEAPS call + sell short-term OTM call | Neutral to bullish | Works in most IV | Debit (you pay) | Limited while the short call is open | Net debit | Advanced | Moderate (cost of a LEAPS call) |
| Long Straddle Buy call + buy put, same strike | Big move, either way | Better when IV is low | Debit (you pay) | Unlimited | Net debit | Intermediate | Small (defined risk) |
| Long Strangle Buy OTM call + buy OTM put | Big move, either way | Better when IV is low | Debit (you pay) | Unlimited | Net debit | Intermediate | Small (defined risk) |
Max profit and loss are per strategy at expiration, before commissions, and ignore early assignment. "Unlimited" means there is no theoretical cap. Numbers depend on the strikes and premiums you choose.
Three questions to narrow it down
- Which way do you expect the stock to go? Up, down, sideways, or a big move you cannot call. That picks the row group.
- Are options cheap or expensive right now? Check the IV rank. High IV favors selling (credit) strategies; low IV favors buying (debit) strategies.
- How much can you afford to lose? Defined-risk spreads cap your loss at a known number. Covered calls and cash-secured puts need enough money for 100 shares.
Not financial advice
This page is for educational and informational purposes only. It is not financial, investment, tax, or legal advice, and it is not a recommendation to buy or sell any security or to use any strategy. All examples use hypothetical numbers. Options involve risk and are not suitable for everyone. Do your own research and consider talking to a licensed professional before trading.