65-Day Academy · Day 56 · Options: Strategies
Strategy Selection — Matching Structure to View
The selection matrix
Strongly bullish, long horizon, low IV → long call or LEAPS. Moderately bullish, 2–6 weeks → bull call spread. Neutral-to-slowly-up, want income → covered call / CSP (the Wheel). Strongly bearish but defined-risk → bear put spread. Expecting a BIG move, direction unknown, low IV → long straddle (advanced — theta is brutal). Expecting NO big move, high IV → iron condor (advanced — tail risk). The matrix is: view × horizon × IV → structure.
The beginner boundary
Sound progression: (1) stock only, (2) covered calls/CSPs (the Wheel), (3) vertical spreads for direction, (4) multi-leg structures (condors, calendars) only after a year of journaling the simpler ones. Each step adds legs, costs, and failure modes — the optionality of complexity is almost always negative for a new trader. Master the Wheel before the zoo.
What you'll practise
View: moderately bullish over 4 weeks; IV rank 75. Which structures fit? (Select all that apply)
10 XP in the app · introductory
Sources
- Options Strategy LibraryCBOE education
Take this lesson graded in the app →
All lessons are for educational purposes only and are not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk and are not suitable for every investor.