| Some strategies |
| If you are Bearish... |
| Buy puts - Look for a bearish market where you anticipate a fall in the price of the underlying stock below the breakeven. |
| Covered puts - Look for a bearish or stable market where a decline in the price of the underlying is anticipated with little risk of the market rising. |
| Bear call spread - A debit spread created by purchasing a higher strike put and selling a lower strike put with the same expiration dates. For moderately bearish market. |
| Bear put spread - A credit spread created by purchasing a higher strike call and selling a lower strike call with the same expiration dates. For a moderately bearish or stable market. |
| If you are Bullish... |
| Buy calls - Look for a bullish stock where a rise above the breakeven is anticipated. |
| Covered calls - Look for a bullish-to-neutral market where a slow rise in the price of the underlying is anticipated with little risk of decline. |
| Vertical spread - A combination of long and short options to limit your losses when the markets are volatile. |
| Bull call spread - Purchase a lower strike call and sell a higher strike call with the same expiration dates. Use in a moderately bullish market. |
| Bull put spread - A credit spread created by purchasing a lower strike put and selling a higher strike put with the same expiration dates. Use in a moderately bullish market. |