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Investment strategies in options

 

In this site you can find graphs of the values of an options strategy investment versus the value of the associated asset 

 

1) Buying a Call with a strike price k1 (good for a raising market)

2) Buying a Put with a strike price K1 (good for a descending market)

 

 

 

3) Bull Call Spread: Buying a call with a strike price K1 and selling a call with strike price K2 (good for a raising market)

4) Bear Put Spread: Buying a put with a strike price K2 and selling a put with a strike price K1 (good for a descending market)

 

5) Butterfly spread: Buying a call with strike price K1 and buying a put with a strike price K1 (good for a volatile market)