fx Methods
 

The following is a list of the most commonly used strategies that are appropriate for a bullish outlook. We have included some brief information about each one, including how many transactions are involved, whether a debit or credit spread is created and whether or not the it's suitable for a beginner.

For more detailed information on each strategy, such as how to use it, its advantages, and it's disadvantages, simply click on the relevant link. For more assistance in choosing a suitable trading strategy you may like to use our Selection Tool for Options Trading Strategies.

Long Call

This is a single position strategy that involves only one transaction. It's suitable for beginners and comes with an upfront cost.

Short Put

Only one transaction is required for this, and it produces an upfront credit. It isn't suitable for beginners.

Bull Call Spread

This is a simple strategy suitable for beginners. It involves two transactions to create a debit spread.

Bull Put Spread

This is straightforward but it's not really suitable for beginners because of the trading level required. A credit spread is created using two transactions.

Bull Ratio Spread

This is complex and requires two transactions; as such it isn't suitable for beginners. It can create either a debit spread or credit spread, depending on the ratio of options bought to options written.

Short Bull Ratio Spread

This relatively complicated trading strategy isn't ideal for beginners. Two transactions are involved, and a credit spread is created.

Bull Butterfly Spread

There are two types of bull butterfly spread: the call bull butterfly spread and the put bull butterfly spread. It's a complex trading strategy, requiring three transactions, that creates a debit spread. It isn't suitable for beginners.

Bull Condor Spread

There are two types of bull condor spread: the call bull condor spread and the put bull condor spread. This strategy requires four transactions and it's not suitable for beginners. It creates a debit spread.

Bull Call Ladder Spread

This is a complex trading strategy requiring three transactions. It creates a debit spread and it's not suitable for beginners.