Options Strategies — Module 5 Recap

All 14 strategies in one quick-reference matrix. Direction × IV regime × capital tolerance.

Build a position in the strategy builder →

Module 5 covered 14 distinct options strategies plus the selection framework. This recap is the matrix view — quickly find the right strategy by direction, IV regime, and capital tolerance.

If you only remember the framework: Match strategy to regime FIRST, pick the specific structure second. Most retail F&O losses come from running the right strategy in the wrong regime.

Strategy selection matrix

Bullish, low IV: Long call, bull call spread. → Long call, Bull call spread

Bullish, high IV: Bull call spread, short put. → Bull call spread

Bearish, low IV: Long put, bear put spread. → Long put, Bear put spread

Bearish, high IV: Bear put spread, short call. → Bear put spread

Volatile, pre-event, low IV: Long straddle, long strangle. → Long straddle, Long strangle

Sideways, high IV: Short strangle, iron condor, iron butterfly. → Short strangle, Iron condor

Sideways, low IV with catalyst ahead: Calendar spread. → Calendar spread

Long-stock holders generating income: Covered call. → Covered call

Long-stock holders hedging: Protective put. → Protective put

Bounded-risk family vs unlimited-risk family

Bounded risk (max loss known at entry): long call, long put, bull/bear spreads, iron condor, iron butterfly, calendar, covered call (if you own the stock), protective put.

Unlimited (or large) risk: short straddle, short strangle, ratio spread, jade lizard.

For retail accounts under ₹10 lakh: stay almost exclusively in the bounded-risk family. Defined max losses are the right risk-management posture for small capital.

Module 5 in one rule

Match direction + IV regime + capital tolerance to a family. Pick the specific strategy by margin and reward:risk preferences within that family.

If you can't articulate why you're using THIS strategy (vs the others in the same family) before entering, you're picking based on familiarity rather than fit. That's the mistake retail traders make most often.

← Previous
Picking the Right Strategy

Key takeaways

Module 5 wrap-up

Which 3 strategies should I start with?

Long call (directional buying), iron condor (income), and protective put (hedging). They cover the three main playbooks with bounded risk.

How many strategies should I use regularly?

Most successful retail traders use 3-5 strategies regularly. Trying to learn all 14 at once produces shallow understanding of each. Master your 3-5 deeply.

Where do I see live Greeks for any strategy?

Strota's strategy builder accepts any multi-leg combination and shows net Delta, Gamma, Theta, Vega, max profit, max loss, and breakeven points.

What's next?

Module 4 (Options Greeks Applied) if you haven't read it yet — same concepts but from the risk-reading angle. After that, Module 6 (OI Buildup Playbook, planned) for stock-specific positioning, and Module 7 (Expiry Day Mechanics, planned).

Build a position in the strategy builder →

Related smart-money tools