Bullish Option Strategies

Strategies employed in options trading can generally be classified in three categories – bullish, bearish, or neutral.

An options trading strategy is classified as bullish when the underlying stock price is expected to increase. In order to implement the most effective strategy, one must ascertain exactly how much the stock price can increase and the time frame in which the bullish move will occur.

Bullish strategies can range from one extreme to the other. The most bullish options trading strategies is a simple call buying strategy. But since stocks rarely increase by huge margins, many traders employ a moderately bullish trading strategy.

With the moderately bullish strategy, a target price is set for the run and bull spreads are used to minimize any associated risk. With moderately bullish strategies, the maximum profit is capped. Yet they still usually cost less to employ or even give you a credit. Hence my favorite option strategies are option spreads.

Here is a list of Bullish Option Strategies -

• Long Stock
• Long Call
• Short Put
• Synthetic Long Call
• Covered Call
  
• Covered Straddle
• Synthetic Long Stock
• Collar
• Bull Call Spread
• Bull Put Spread
• Call Time Spread
• Ratio Call Spread

 Of course my favorite being the Bull Put Spread.

bull put spread, bullish option strategies