# Option trading long put and call strategies

The Greeks represent the consensus of the marketplace as to how the option will react to changes in certain variables associated with the pricing of an option contract. Calls may be used as an alternative to buying stock outright. Multiple leg options strategies involve additional risksand may result in complex tax treatments.

There is no guarantee that the forecasts of implied volatility or the Greeks will be correct. Implied Volatility After the strategy is established, you want implied volatility to increase. But be careful, especially with short-term out-of-the-money calls. You can learn more about delta in Meet the Greeks. As Time Goes By For this strategy, time decay is the enemy.

Multiple leg options strategies involve additional risksand may result in complex tax treatments. The Options Playbook Featuring 40 options strategies for bulls, bears, rookies, all-stars and everyone in between. Options involve risk and are not suitable for all investors.

Maximum Potential Loss Risk is limited to the premium paid for the put. Break-even at Expiration Strike A minus the cost of the put. There is no guarantee that the forecasts of implied volatility or the Greeks will be correct.

The Greeks represent the consensus of the marketplace as to how the option will react to changes in certain variables associated with the pricing of an option contract. Use the Technical Analysis Tool to look for bullish indicators. A long put gives you the right to sell the underlying stock at strike price A. After the strategy is established, you want implied volatility to increase.