Part12 Trading Master Class

Advanced Options Strategies
Butterfly Spread
When to Use: Expect stock to stay near a specific price.

How It Works: Buy 1 ITM option, sell 2 ATM options, buy 1 OTM option.

Risk: Limited.

Reward: Highest if stock ends at middle strike.

Example: Stock ₹100, buy call ₹95, sell 2 calls ₹100, buy call ₹105.

Calendar Spread
When to Use: Expect low short-term volatility but possible long-term move.

How It Works: Sell short-term option, buy long-term option at same strike.

Risk: Limited to net premium.

Reward: Comes from time decay of short option.