Advanced Trading Strategies on Siren
On Siren, you can implement Options strategies from bullish, neutral, and bearish
In order to use the strategy, it’s as easy as clicking the “Strategy” tab on the order tab section besides the underlying asset
After adding a strategy you can customize strikes and expirations using dropdowns in the trade panel
Here’s a comprehensive list of the strategies and when to use it:
Buy Call
Definition: Buying a call option to profit from an expected increase in the price of the underlying asset.
Use when: You expect a significant increase in the price of the underlying asset.
Sell Put
Definition: Selling a put option to collect premium income with the obligation to buy the underlying asset if the option is exercised.
Use when: You expect the price of the underlying asset to remain stable or increase.
Buy Put
Definition: Buying a put option to profit from an expected decrease in the price of the underlying asset.
Use when: You expect a significant decrease in the price of the underlying asset.
Sell Call
Definition: Selling a call option to collect premium income with the obligation to sell the underlying asset if the option is exercised.
Use when: You expect the price of the underlying asset to remain stable or decrease.
Long Call Vertical (Bull Call Spread)
Definition: Buying a call option and simultaneously selling another call option at a higher strike price with the same expiration date.
Use when: You expect a moderate increase in the price of the underlying asset.
Long Put Vertical (Bear Put Spread)
Definition: Buying a put option and simultaneously selling another put option at a lower strike price with the same expiration date.
Use when: You expect a moderate decrease in the price of the underlying asset.
Short Call Vertical (Bear Call Spread)
Definition: Selling a call option and simultaneously buying another call option at a higher strike price with the same expiration date.
Use when: You expect the price of the underlying asset to remain stable or slightly decrease.
Short Put Vertical (Bull Put Spread)
Definition: Selling a put option and simultaneously buying another put option at a lower strike price with the same expiration date.
Use when: You expect the price of the underlying asset to remain stable or slightly increase.
Long Call Calendar
Definition: Buying a long-term call option and selling a short-term call option with the same strike price.
Use when: You expect the price of the underlying asset to increase over the long term, but remain stable in the short term.
Long Put Calendar
Definition: Buying a long-term put option and selling a short-term put option with the same strike price.
Use when: You expect the price of the underlying asset to decrease over the long term, but remain stable in the short term.
Short Call Calendar
Definition: Selling a long-term call option and buying a short-term call option with the same strike price.
Use when: You expect the price of the underlying asset to remain stable in the long term, but increase in the short term.
Short Put Calendar
Definition: Selling a long-term put option and buying a short-term put option with the same strike price.
Use when: You expect the price of the underlying asset to remain stable in the long term, but decrease in the short term.
Long Straddle
Definition: Buying both a call and a put option with the same strike price and expiration date to profit from significant price movements in either direction.
Use when: You expect a significant price movement in either direction, but are unsure of the direction.
Long Strangle
Definition: Buying a call and a put option with different strike prices but the same expiration date to profit from significant price movements in either direction.
Use when: You expect a significant price movement in either direction, but are unsure of the direction, and prefer a lower cost strategy than a straddle.
Short Straddle
Definition: Selling both a call and a put option with the same strike price and expiration date to collect premium income, expecting little movement in the underlying asset's price.
Use when: You expect the price of the underlying asset to remain stable.
Short Strangle
Definition: Selling a call and a put option with different strike prices but the same expiration date to collect premium income, expecting little movement in the underlying asset's price.
Use when: You expect the price of the underlying asset to remain stable, and prefer a lower risk strategy than a straddle.
Long Iron Butterfly
Definition: Buying a call option at a lower strike price, selling both a call and a put option at a middle strike price, and buying a put option at a higher strike price.
Use when: You expect minimal movement in the price of the underlying asset, but want to limit potential losses.
Short Iron Butterfly
Definition: Selling a call option at a lower strike price, buying both a call and a put option at a middle strike price, and selling a put option at a higher strike price.
Use when: You expect significant movement in the price of the underlying asset.
Long Call Butterfly
Definition: Buying one call option at a lower strike price, selling two call options at a middle strike price, and buying one call option at a higher strike price.
Use when: You expect minimal movement in the price of the underlying asset, with a focus on a specific price target.
Long Put Butterfly
Definition: Buying one put option at a higher strike price, selling two put options at a middle strike price, and buying one put option at a lower strike price.
Use when: You expect minimal movement in the price of the underlying asset, with a focus on a specific price target, and want to limit potential losses.
Short Call Butterfly
Definition: Selling one call option at a lower strike price, buying two call options at a middle strike price, and selling one call option at a higher strike price.
Use when: You expect significant movement in the price of the underlying asset, but prefer a lower cost strategy.
Short Put Butterfly
Definition: Selling one put option at a higher strike price, buying two put options at a middle strike price, and selling one put option at a lower strike price.
Use when: You expect significant movement in the price of the underlying asset, but prefer a lower cost strategy.
Long Iron Condor
Definition: Buying a call option at a lower strike price, selling a call option at a middle strike price, selling a put option at another middle strike price, and buying a put option at a higher strike price.
Use when: You expect minimal movement in the price of the underlying asset, and want to limit potential losses.
Short Iron Condor
Definition: Selling a call option at a lower strike price, buying a call option at a middle strike price, buying a put option at another middle strike price, and selling a put option at a higher strike price.
Use when: You expect significant movement in the price of the underlying asset.
Long Call Condor
Definition: Buying one call option at a lower strike price, selling two call options at middle strike prices, and buying one call option at a higher strike price.
Use when: You expect minimal movement in the price of the underlying asset, and want to limit potential losses.
Long Put Condor
Definition: Buying one put option at a higher strike price, selling two put options at middle strike prices, and buying one put option at a lower strike price.
Use when: You expect minimal movement in the price of the underlying asset, and want to limit potential losses.
Short Call Condor
Definition: Selling one call option at a lower strike price, buying two call options at middle strike prices, and selling one call option at a higher strike price.
Use when: You expect significant movement in the price of the underlying asset.
Short Put Condor
Definition: Selling one put option at a higher strike price, buying two put options at middle strike prices, and selling one put option at a lower strike price.
Use when: You expect significant movement in the price of the underlying asset.
Call Back Ratio
Definition: Buying multiple call options and selling a smaller number of call options at a higher strike price to profit from a strong upward movement in the underlying asset's price.
Use when: You expect a strong upward movement in the price of the underlying asset.
Call Front Ratio
Definition: Selling multiple call options and buying a smaller number of call options at a higher strike price to profit from a moderate upward movement in the underlying asset's price.
Use when: You expect a moderate upward movement in the price of the underlying asset.
Put Back Ratio
Definition: Buying multiple put options and selling a smaller number of put options at a lower strike price to profit from a strong downward movement in the underlying asset's price.
Use when: You expect a strong downward movement in the price of the underlying asset.
Put Front Ratio
Definition: Selling multiple put options and buying a smaller number of put options at a lower strike price to profit from a moderate downward movement in the underlying asset's price.
Use when: You expect a moderate downward movement in the price of the underlying asset.
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