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Options Strategy
An options strategy is a position or combination of positions designed to create a particular exposure, payoff or risk profile. A strategy may contain: one option, multiple options, or options combined with the underlying asset.
Why it matters to you
Options allow traders to express much more specific views than simply: bullish or bearish. A trader might believe: the underlying will rise moderately, volatility will increase, the market will remain range bound, a stock needs downside protection, or the potential loss should be capped. Different structures can express each of those views.
Terms that sit next to this one
Payoff, Risk Profile