option trading strategies

Option trading strategies involve buying and selling options contracts to manage risk or speculate on price movements of underlying assets, like stocks. Common strategies include: 1. **Covered Call**: Owning a stock and selling a call option to earn premium income. 2. **Protective Put**: Buying a put option to safeguard a stock investment against potential losses. 3. **Straddle**: Buying both a call and a put option on the same asset, betting on volatility. 4. **Iron Condor**: Selling both a call and a put option, aiming to profit from low volatility. Each strategy addresses different market outlooks and risk tolerance.