This article has been reviewed by Sumeet Sinha, MBA (Emory University Goizueta Business School). Should you have any inquiries, please do not hesitate to contact at sumeet@finlightened.com.
Download the Options Trading Cheat Sheet PDF here.
Long Call
When you expect the stock price to go up before the expiration date, you buy a call option. Buying a call option makes it a ‘long call’.

Long Put
When you expect the stock price to go down before the expiration date, you buy a put option. Buying a put option makes it a ‘long put’.

Short Call
Selling a call option makes this position a ‘short call’

Short Put
Selling a put option makes this strategy a ‘short put’.

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Bull Call Spread
A bull call spread is a vertical spread created by buying a call option (long call) at a lower strike price and selling a call option (short call) at a higher strike price.

Bear Call Spread
A bear call spread is a vertical spread created by buying a call option (long call) at a higher strike price and selling a call option (short call) at a lower strike price.

Bull Put Spread
A bull put spread is a vertical spread created by buying a put option (long put) at a lower strike price, and selling a put option (short put) at a higher strike price.

Bear Put Spread
A bear put spread is a vertical options spread created by buying a put option (long put) at a higher strike price, and selling a put option (short put) at a lower strike price.

Long Straddle
A Long Option Straddle is created by buying a call and buying a put option with the same expiration date and same strike price.

Short Straddle
A Short Straddle Option is created by selling a call and selling a put option with the same expiration date and same strike price.

Long Strangle
A Long Strangle Option is created by buying a call option at a higher strike price and buying a put option at a lower strike price with the same expiration date.

Short Strangle
A Short Strangle Option is created by selling a call at a higher strike price and selling a put option at a lower strike price with the same expiration date.

Long Call Butterfly
A long call butterfly spread is established by buying one in-the-money call option, one out-of-money call option, and selling two at-the-money call options.
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Short Call Butterfly
A short call butterfly spread is created by selling one ITM call option, selling one OTM call option, and buying two at-the-money call options.

Long Put Butterfly
A long put butterfly spread is created by selling 2 at-the-money put options and buying two put options – one in-the-money and one out-of-money.

Short Put Butterfly
A short butterfly spread is created by buying 2 at-the-money put options and selling two put options – one in-the-money and one out-of-money.

Long Call Condor
A long call condor is created by purchasing one in-the-money call option, one out-of-money call option, and selling two call options in between.

Short Call Condor
A short call condor is created by selling one ITM call option, selling one OTM call option, and buying two call options in between.

Long Put Condor
A long put condor spread is created by buying two put options – one in-the-money and one out-of-money, and selling 2 put options in between.

Short Put Condor
A short put condor is created by selling two put options – one in-the-money and one out-of-money and buying 2 put options in between.

Covered Call
In a Covered Call Option Strategy, you sell a Call Option, while holding the underlying stock (100 shares per Short Call).

Covered Put
In a Covered Put Option Strategy, you sell a Put Option, while shorting the underlying stock (100 shares per Short Put)

Download the Options Trading Cheat Sheet PDF here.
This options trading cheat sheet is a very handy resource to look at the option strategies at a glance – how the strategy is created, and what the profit and loss graphs look like for each strategy.
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Read Also:
Blog Posts: For Beginner Level
Call vs Put Options: Easy and Informative 5 Minute Guide
How To Buy A Long Call Option on 100 Shares: Step-by-Step Guide
How To Buy A Long Put Option on 100 Shares: Step-by-Step Guide
Options Greeks Cheat Sheet: 4 Greeks – Delta, Gamma, Theta, Vega
Options Trading Levels: 4 Approval Levels For Easy Risk Management
Blog Posts: For Intermediate Level
Bear Call Spread vs Bull Call Spread: Easy 5 Point Comparison
Bear Put Spread vs Bull Put Spread: Easy 5 Point Comparison
Choose Your Options Strategy Wisely: Comprehensive List of 25 Strategies
Straddle vs Strangle Options: Explained In 5 Minutes


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