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Strategy Playbook

BEGINNER → PRO

The fundamental option strategies, in plain English — each one paired with its strongest backtested setups from our scanner. Start with the income core, then grow into the rest.

Capped loss = worst case is known & limited up front Uncapped risk = loss can exceed the premium — size small

Income & Neutral Strategies

Advanced & Directional Strategies

Poor Man's Covered Call
ADVANCED Capped loss

A capital-light covered call using a LEAPS.

IREN 56% HYG 64% CIFR 57%
LEAPS (Long-Dated Call)
ADVANCED Capped loss

A long-term, stock-replacement bullish bet.

QQQ 87% SPY 85% VOO 85%
Ratio Put Spread
ADVANCED Uncapped risk

Advanced: profit from a moderate, measured drop.

GEV 89% NBIS 81% RDDT 80%
Bull Call Spread (Debit)
ADVANCED Capped loss

Advanced: a defined-risk bullish bet for less than buying the stock.

BMNR 89% ETHA 93% RBRK 90%
Bear Put Spread (Debit)
ADVANCED Capped loss

Advanced: a defined-risk bearish bet.

UMAC 89% RDDT 93% ETHA 93%
Iron Butterfly
ADVANCED Capped loss

Advanced: a higher-credit, tighter cousin of the iron condor.

FDX 87% CRWV 69% APD 91%
Broken-Wing Butterfly
ADVANCED Capped loss

Advanced: a butterfly skewed to remove risk on one side, often for a credit.

Hermes-evaluated — no setup clearing the quality floor right now.
Call Ratio Backspread
ADVANCED Capped loss

Advanced: strongly bullish with unlimited upside, often opened for a credit.

Hermes-evaluated — no setup clearing the quality floor right now.
Diagonal Call Spread
ADVANCED Capped loss

Advanced: a longer-dated, capital-efficient bullish income structure.

Hermes-evaluated — no setup clearing the quality floor right now.
Reverse Iron Condor (Long Vol)
ADVANCED Capped loss

Advanced: a defined-risk bet on a big move in either direction.

TFSL 91% HBM 90% BITO 89%
Long Straddle (Long Vol)
ADVANCED Capped loss

Advanced: profit from a big move either way; risk limited to the premium.

UVXY 61% SQQQ 60% ASML 71%
Long Strangle (Long Vol)
ADVANCED Capped loss

Advanced: a cheaper long-vol play using OTM options.

UVXY 60% SQQQ 60% ASML 71%
Protective Put
ADVANCED Capped loss

Advanced: insurance for a stock you own.

Hermes-evaluated — no setup clearing the quality floor right now.
Collar
ADVANCED Capped loss

Advanced: low/zero-cost protection by financing a put with a covered call.

Hermes-evaluated — no setup clearing the quality floor right now.

Setups are ranked from 66 quality-cleared backtests (min 10 trades, ≥70% win rate). Backtested results are not a guarantee of future performance.