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

Cash-Secured Put / The Wheel
BEGINNER Uncapped risk

Get paid to wait to buy a stock you like.

NDX 81% SQQQ 66% MSTR 74%
Bull Put Credit Spread
BEGINNER Capped loss

Defined-risk bullish income.

INTU 64% GS 75% COST 70%
Iron Condor
BEGINNER Capped loss

Profit when a stock goes nowhere.

DE 79% ADBE 84% SNPS 79%
Short Strangle
Uncapped risk

Maximum premium for a range-bound view.

UVXY 67% NDX 74% INTU 83%
Short Straddle
Uncapped risk

An IV-crush play right at the money.

NDX 62% SQQQ 53% ASML 56%
Bear Call Credit Spread
Capped loss

Defined-risk bearish income.

EQIX 70% MAR 79% ISRG 81%
Jade Lizard
Uncapped risk

Short premium with no upside risk.

NDX 77% STRL 73% GEV 90%
Calendar Spread
Capped loss

Sell time decay against a longer-dated option.

No setups clearing the quality floor right now.
Long Butterfly
Capped loss

A cheap bet on a precise price target.

CPA 59% TXN 52% XRT 52%

Advanced & Directional Strategies

Covered Call
ADVANCED Capped loss

Earn rent on shares you already own.

Requires owning 100 shares per contract — an overlay on stock you already hold, not a generic pick.
Poor Man's Covered Call
ADVANCED Capped loss

A capital-light covered call using a LEAPS.

Hermes-evaluated — no setup clearing the quality floor right now.
LEAPS (Long-Dated Call)
ADVANCED Capped loss

A long-term, stock-replacement bullish bet.

NDX 66% LLY 74% COST 70%
Ratio Put Spread
ADVANCED Uncapped risk

Advanced: profit from a moderate, measured drop.

NDX 66% ADBE 71% SQQQ 63%
Bull Call Spread (Debit)
ADVANCED Capped loss

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

LLY 64% SNPS 59% LNG 56%
Bear Put Spread (Debit)
ADVANCED Capped loss

Advanced: a defined-risk bearish bet.

MRNA 64% UVXY 59% SNOW 66%
Iron Butterfly
ADVANCED Capped loss

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

DG 56% TGT 56% MU 52%
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.

ORCL 70% AMGN 63% NUE 63%
Long Straddle (Long Vol)
ADVANCED Capped loss

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

ORCL 59% STRL 56% HLNE 52%
Long Strangle (Long Vol)
ADVANCED Capped loss

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

TMUS 53% CLS 52%
Protective Put
ADVANCED Capped loss

Advanced: insurance for a stock you own.

Requires owning 100 shares per contract — an overlay on stock you already hold, not a generic pick.
Collar
ADVANCED Capped loss

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

Requires owning 100 shares per contract — an overlay on stock you already hold, not a generic pick.

Setups are ranked from 53 quality-cleared backtests (min 10 trades, ≥70% win rate). Backtested results are not a guarantee of future performance.