In this part, we are looking at the core options trading strategies.
If you are new to options the used nomenclature may seem strange if not bizarre (Condor, Butterfly, Straddle, etc.) – do not be confused as each strategy simply represents a specific risk and reward structure (the name is only for convenience when discussing).
In learning these strategies, the primary objective is to understand how risk and reward are reflected in the structure with movements in the underlying stock, changes in volatility and the passage of time – as your skill improves, you will begin to intuitively think in these terms and as your knowledge progresses, you will be able to fluidly make structure adjustment decisions in real-time and under extreme stress.