options-strategies

# Options Strategies Skill

## Overview

This skill provides structured knowledge and step-by-step execution guidance
for the most popular options strategies — from basic single-leg trades to
complex multi-leg spreads.

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## Strategy Taxonomy

### 1. Directional Bullish Strategies

#### Long Call
- **Setup**: Buy 1 call option
- **Max Profit**: Unlimited
- **Max Loss**: Premium paid
- **Breakeven**: Strike + Premium
- **Best For**: Strong bullish conviction with defined risk
- **Greeks**: +Delta, +Vega, -Theta

#### Bull Call Spread (Debit Spread)
- **Setup**: Buy lower strike call, Sell higher strike call (same expiry)
- **Max Profit**: Width of spread - net debit
- **Max Loss**: Net debit paid
- **Breakeven**: Lower strike + net debit
- **Best For**: Moderate bullish view, lower cost than long call
- **Greeks**: +Delta (reduced), -Vega (reduced), -Theta (reduced)

#### Bull Put Spread (Credit Spread)
- **Setup**: Sell higher strike put, Buy lower strike put (same expiry)
- **Max Profit**: Net credit received
- **Max Loss**: Width of spread - net credit
- **Breakeven**: Higher strike - net credit
- **Best For**: Moderately bullish, income generation, high probability trade
- **Greeks**: +Delta, -Vega, +Theta

#### Cash-Secured Put
- **Setup**: Sell a put, hold cash to cover assignment
- **Max Profit**: Premium received
- **Max Loss**: Strike price - premium (stock going to zero)
- **Breakeven**: Strike - premium
- **Best For**: Willing to own stock at a discount, income generation

#### Synthetic Long Stock
- **Setup**: Buy ATM call, Sell ATM put (same strike, same expiry)
- **Max Profit**: Unlimited
- **Max Loss**: Substantial (like owning stock)
- **Best For**: Bullish with less capital than buying stock

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### 2. Directional Bearish Strategies

#### Long Put
- **Setup**: Buy 1 put option
- **Max Profit**: Strike - Premium (stock to zero)
- **Max Loss**: Premium paid
- **Breakeven**: Strike - Premium
- **Best For**: Strong bearish conviction, portfolio hedg...