Reviewed by Samantha Silberstein What Is a Strap Option? A strap option is a market neutral options trading strategy with a ...

A Long Straddle option strategy involves simultaneously buying a call option and a put option on the same underlying asset, ...

(By comparison, limited downside risk is one of the main attractions of a traditional call-buying strategy ... who are very confident in their bullish forecast for the shares.

As such, purchased call options are a bullish strategy. To understand how buying call options might play out, let's look at an example. You are bullish on Stock XYZ, which is currently trading at ...

and when they anticipate the price to fall, they may choose a put option. Understanding these fundamentals is crucial before delving into various option trading strategies.