Option strategies combine calls and puts to manage risk, speculate on price moves, and help commodity traders profit from volatility, direction, or hedging needs.
This is a brief guide to some of the most popular options strategies used by options traders.
We list a total of 12 options strategies, starting with the 4 most popular ones below, followed by 8 more options strategies.
If you’d like to try them in action, see our list of regulated brokers at the end of this technical analysis guide.
Most Popular Option Strategy Guides For Traders
- Call Option – If bullish, call options to maximize leverage and minimize risk to the downside.
- Put Option – Puts are a risk defined alternative to shorting a stock, puts max leverage and minimize risk
- Bull Call Spread – A risk defined and reward defined alternative to buying call options.
- Bear Put Spread – A cheaper alternative to buying put options outright, however, defines max reward.
More Option Strategies
- At the Money Option: Learn about why an ‘at-the-money’ options contract has no value.
- Bear Put Ratio Backspread: This guide covers the components of bear put ratios.
- Bear Put Spread: How is the bear put spread different from the bear put ratio? Find out.
- Bull Call Ratio Backspread: Learn about why this bullish backspread strategy is used by options traders.
- Bull Call Spread: Find out why it’s also called the ‘debit spread’.
- Call Option: See how leverage is used in call options.
- In the Money Option: Why does an ‘in-the-money’ option have intrinsic value?
- Put Option: What role do defined risk and leverage play?
Where Can I Trade Commodity Options?
If you are interested in trading commodity options, look at our reviews of these regulated brokers available in :
| Broker | Details | Sign up |
|---|---|---|
 | User friendly platform and leading risk management tools. | Open Account Now Plus500 Review |
 | Social trading to copy leading traders. | Open Account Now eToro Review Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. |
 | Multiple trading platforms and over 1,700 stocks. | Open Account Now XTB Review |
 | Reverse trades up to 1 hour with dealCancellation. | Open Account Now easyMarkets Review |
 | Established for 40+ years. | Open Account Now HYCM Review |
 | Up to 500:1 leverage for pro traders, share CFDs on stocks with no mark-up. | Open Account Now Pepperstone Review |
 | Proprietary technical analysis features. | Open Account Now Markets.com Review |
 | Up to 400:1 leverage available for professional traders. | Open Account Now AvaTrade Review |
Data last reviewed:
Technical analysis is most widely used in CFD and forex trading. If you’re ready to apply these techniques, browse our vetted CFD brokers or forex brokers.
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