Option Strategy Type
Tiger currently offers eighteen option strategies as follows:
Covered Call: A combination of 1 lot short position in a call option and 100 shares long position in the same underlying U.S. stock.
Covered Put: A combination of 1 lot short position in a put option and 100 shares short position in the same underlying U.S. stock.
Call Vertical Spread: A combination of 1 lot short position in a call option and 1 lot long position in a call option. This option strategy can be combined when the call options aforementioned have the same underlying (U.S. stock or index), the same expiration date, and different strike prices.
Put Vertical Spread: A combination of 1 lot short position in a put option and 1 lot long position in a put option. This option strategy can be combined when the put options aforementioned have the same underlying (U.S. stock or index), the same expiration date, and different strike prices.
Short Call and Put: A combination of 1 lot short position in a call option and 1 lot short position in a put option. This option strategy can be combined when both options aforementioned have the same underlying (U.S. stock or index) and the same expiration date. The strike price of put option is equal to or less than the strike price of call option.
Protective Call: A combination of 1 lot long position in a call option and 100 shares short position in the same underlying U.S. stock.
Protective Put: A combination of 1 lot long position in a put option and 100 shares long position in the same underlying U.S. stock.
Call Calendar Spread: A combination of 1 lot long position in a call option and 1 lot short position in a call option. This option strategy can be combined when the call options aforementioned have the same underlying (U.S. stock or index), the strike price can be different. The expiration date of short position is earlier than the expiration date of long position.
Put Calendar Spread: A combination of 1 lot long position in a put option and 1 lot short position in a put option. This option strategy can be combined when the put options aforementioned have the same underlying (U.S. stock or index), the strike price can be different. The expiration date of short position is earlier than the expiration date of long position.
Call Butterfly: It consists of a long position of 1 lot of low-strike call options, 2 short positions of mid-strike call options, and 1 long position of high-strike call options, and the above reverse positions can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the middle strike price minus the low strike price is equal to the high strike price minus the middle strike price.
Put Butterfly: It consists of a long position of 1 lot of a low-strike put option, a short position of 2 lots of an intermediate strike put option, and a long position of 1 lot of a high-strike put option and the above opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the middle strike price minus the low strike price is equal to the high strike price minus the middle strike price.
Iron Butterfly: consists of a short position of 1 lot of a low-strike put option, a long position of 1 lot of a mid-strike call option, a long position of 1 lot of a mid-strike put option, and a short position of 1 lot of a high-strike call option and the above opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the middle strike price minus the low strike price is equal to the high strike price minus the middle strike price.
Call Condor: It consists of a long position of 1 lot of the lowest strike price call option, 1 short position of the lower strike price call option, 1 short position of the higher strike price call option, and 1 long position of the highest strike price call option and the above opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the lower strike price minus the highest strike price is equal to the highest strike price minus the higher strike price.
Put Condor: It consists of a long position of 1 put option with the lowest strike, a short position with a lower strike put option, a short position with a higher strike put option, and a long position with the highest strike put option and the opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the lower strike price minus the highest strike price is equal to the highest strike price minus the higher strike price.
Iron Condor: It consists of a short position of 1 put option with lowest strike, a long position with a lower strike put option, a long position with a higher strike call option, and a long position with a call option with the highest strike price and the opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the lower strike price minus the highest strike price is equal to the highest strike price minus the higher strike price.
Box: It consists of a long position of 1 lot of a low strike call option, a short position of 1 lot of a low strike put option, a short position of 1 lot of a high strike call option, and a long position of 1 lot of the highest strike put option and the opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) and expiration date of the aforementioned options are the same, the low strike price of the call option and put option with the same strike price is the same, and the high strike price of the call option and put option with the same strike price is the same.
Asymmetric box: It consists of a short position of 1 put option with lowest strike, a long position with 1 put option with lower strike, a long position with 1 lot of call option with higher strike, and a short position with 1 lot of call option with highest strike, and the opposite position can also be formed; The composition of the portfolio must meet the following conditions: the underlying (U.S. stock or index) of the aforementioned options has the same expiration date, and the lower strike price minus the highest strike price is not equal to the highest strike price minus the higher strike price.
Custom: You can customize the standard combinations that are not listed above, and the custom combinations can contain the above standard combinations, and the maximum number of legs that support custom options is 4 legs.