Flexibility of Options Strategies

Options strategies provide you with the flexibility to trade specific markets, take advantage of price trends, and adjust the legs of your positions as you trade. You can risk as much or as little as you decide you can afford. Combinations of calls and puts can be used to take advantage of markets in which the price direction of the underlying asset is uncertain or stagnant.  

Spreads are one of the most common types of options strategies used. You can employ call or put spreads that have different strike prices. Most spreads involve purchasing a specific number of calls or puts, and then selling a specific number of calls or puts at a higher or lower price. Some spreads will create a debit, and some will create a credit depending on the price of the options you purchased and the premium you received for the options you sold. You can also use time spreads that use different expiration dates to create the spread between the legs of the position.