Abstract
This research paper reveals the various aspects of option trading strategies with clarity. Also explored the various possibilities we get in option trading. If option trading does not turn out in favor of the trader then he can know their downside risk which is the beauty of these options strategies. This paper shows the theoretical and practical framework of option trading strategies. These option strategies represent a combination of long and short positions for both calls and puts. The purpose of this study is to spread awareness among options traders. It is an important trading and investment tool in the derivatives market.
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