The Bullish Options Trading Strategy

The Bullish Options Trading Strategy 
An option strategy not already covered in this module is the call ratio back spread. The strategy is generally employed when one is strongly bullish about a stock or index as opposed to other strategies such as the bull put spread or the bull call spread, which is usually employed when one is moderately bullish. This bullish options trading strategy entails purchasing and selling call options with the aim of making a maximal profit from momentous upward movement in the underlying stock prices in the short term. The grouping of options purchased and sold buffers the trade from excessive risk while still preserving theoretically infinite profit potential. For instance, buying two higher strike price call options while selling one lower one ensures gains even in a high volatility market. By buying call options using the 2:1 ratio, the trader creates a “back spread” or “back-month” opt...