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An Options strategy refers to a method for trading calls and puts by combining them together. Usually, this involves both Long and Short directions (i.e. buying and selling Options contracts) but some strategies are exclusively Long or Short. Each of the individual option contracts is called a 'Leg'. Most strategies are multi-Leg apart from Long or Short single calls or puts.

Some Options strategies such as covered calls also involve owning the Underlying stock (or asset with similar characteristics).

There are numerous types of option strategy and how appropriate they are depends on the Underlying instrument and the objectives of the trader. Some Options strategies such as Spreads and single Long Options are defined risk (in other words, the maximum amount that can be lost on a trade is known in advance). Other strategies such as Short straddles and selling naked puts or calls are undefined risk (or at least they can go to zero in the case of puts).

Undefined risk strategies are those where the net position is Short. Defined risk strategies are either net equal Long and Short or net Long.
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Top 3 Options Trading Strategies for Monthly Income

Option Alpha video explaining three strategies for generating income from options.


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CBOE Option Strategies Guide
http://www.cboe.com/strategies/default.aspx

A CBOE guide to options strategies, covers basic through to advanced strategies and has explanatory articles about all of them.

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View CBOE Options Dictionary in Options Market Glossary Directory

Option Strategy Finder
http://www.theoptionsguide.com/option-trading-strategies.aspx

A tool to help locate an option strategy based on outlook (bullish/bearish), profit/loss potential, net debit or credit and the number of legs.

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View Options Guide Strategy Finder in Options Market Glossary Directory

Tasty Trade Options Key Concepts & Strategies
https://www.tastytrade.com/tt/learn?locale=en-US

Index of major strategies discussed on TastyTrade.com

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View Tasty Trade in Options Market Glossary Directory

Top 4 options strategies for beginners
http://www.futuresmag.com/2010/05/12/top-4-options-strategies-beginners?page=2

A guide to four simple options strategies which can be used by beginners. Note these strategies may also be used by more experienced options traders also.

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Options Playbook Strategy Guide
http://www.optionsplaybook.com/option-strategies/

Guide to options strategies from optionsplaybook.com

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Option Trading Strategies
https://www.randomwalktrading.com/option-trading-strategies/

Random Walk Trading describe the main varieties of options trading strategies, in addition to some less well-known types like the 'Iron Cockroach'.

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View Random Walk Trading in Options Market Glossary Directory


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Video

Top 3 Options Trading Strategies for Monthly Income

Option Alpha video explaining three strategies for generating income from options.