In order to protect a stock, investors and traders use the collar. The collar, also known as cylinder strategy or

Conversion is basically a floor trader strategy. The principle behind this strategy is known as creating a synthetic short position

Reversal is similar with the arbitrage and conversion strategies. This involves purchasing one option and selling another to make money

The short strangle is a neutral strategy since profit is achieved from sideway movements of stocks. Short strangles are the

The calendar spread is also known as the time spread or horizontal spread because this profits on time decay of

The put ratio spread is considered a neutral strategy because you do not want movement in stocks in this strategy.

The long strangle takes advantage of market movement from either direction. The short strangle and long strangle are different in

The short straddle, like the long straddle, is considered a neutral strategy. The short and long straddles are different in

The long straddle takes advantage of stocks moving in either direction. The short and long straddles are different in the

This is a good strategy for when you have a neutral feeling about a stock because it is trading on

The long butterfly is a three legged strategy. It is best for neutral outlook or when you are anticipating a