What is option strategy

Option strategies for practice:
Your strategy guide

What are options anyway?

Options offer private investors, investors, but also speculators, many opportunities to benefit from a wide variety of trading scenarios. No other derivative or financial instrument is able to emulate the entire range of option strategies. It is precisely the possibility of using option strategies to benefit not only from rising or falling prices, but also from lateral price phases or even an increase or decrease in volatility, which makes these trading instruments so unique.

In the basic form, investors can trade put or call options. It is essential to understand that private individuals can initially not only buy options, but also sell them. This often leads to misunderstandings - because how should an option be initially sold if one has not owned it before? The answer: Options markets are “zero-sum markets”, in other words: Each option buyer is faced with an option writer, i.e. the seller, who covers the buyer's rights through mirrored obligations. For this, however, he receives a premium - similar to an insurance company.

Options become particularly exciting when they are combined with other options or underlyings and more sophisticated strategies are implemented. The abundance of these strategies can be found in the options strategy tool on this page.