There are various types of Stock Option Trading Strategies available and we are listing out most of them and also when to use those strategies.
 Unidirectional  1 Legged Strategies
 Unlimited Profit  Limited loss
 Long CallBullish
 Long PutBearish
 Limited Profit Unlimited loss
 Short CallBearish
 Short PutBullish
 Unidirectional  2 Legged Strategies
 Limited Profit limited loss
 Bull Call SpreadBullish
 Put SpreadBullish
 Bear Put SpreadBearish
 Bear Call SpreadBearish


We cover one strategy every month

Construction:

Buy 1 Call at strike price A. 
Margins:

No. 
Your Market Outlook:

Bullish. The Nifty price will rise well above the Strike price A. The more bullish your view the further out of the Money you can buy to create maximum leverage. 
Profit:

Profit is unlimited .The profit increases as the market rises. 
Break – Even point:

The breakeven point will be the options Strike price A plus the premium paid for the option. 
Loss:

The maximum loss is the premium paid for the option. Maximum loss will be if the nifty closes at strike price A or below it. Any point between the strike price A and the breakeven point you will make a loss although not the maximum loss. 
Volatility:

The option value will increase as volatility increases 
Time Decay:

As each day passes the value of the option erodes. (Bad) 
CONSTRUCTION OF LONG CALL

NIFTY IS TRADING AT  8000 SPOT PRICE 
BUY CALL OPTION AT  8100 STRIKE PRICE A 
PREMIUM PAID  85 
B.E.P (8100 + 85)  8185 (STRIKE PRICE A + PREMIUM PAID) 
PAYOFF SCHEDULE: LONG CALL
Loss

Nifty Closing at

Profit

85

7500


85

7600


85

7700


85

7800


85

7900


85

8000

SPOT PRICE

85

8100

STRIKE PRICE A

8185

B.E.P


8200

15


8300

115


8400

215


8500

315

EXERCISE – LONG CALL
Nifty is trading at 7980.
Bought call option of Strike price 8100 @ 60
Q.1.What is the B.E.P?
Q.2.What is the profit/loss if nifty closes at
(A) 8385 (B) 8201 (C) 8063 (D) 7956 (E) 7700 (F) 8185 (G) 7657 (H) 8400
Please answer the above questions and mail the answers to us. We will evaluate you performance