Basic Strategies

Basic Strategies

1. Long Call:
   • Purchasing a call option to profit from an anticipated increase in the underlying asset's price.
2. Long Put:
   • Purchasing a put option to profit from an anticipated decrease in the underlying asset's price.
3. Covered Call:
   • Holding a long position in an asset while selling a call option on the same asset to generate additional income.
4. Protective Put:
   • Holding a long position in an asset and buying a put option to hedge against potential declines in the asset's price.