Options Trading Strategies with Payoff Graphs (Bullish, Bearish & Neutral)

A visual options education hub with interactive profit–loss graphs, strategy breakdowns and clear strike distance from ATM, designed for index and stock options traders.

What This Options Strategy Gallery Shows

The page is divided into three sections, matching your market view:

• Bullish Strategies – When you expect the underlying to rise.
• Bearish Strategies – When you expect the underlying to fall.
• Neutral / Range-Bound Strategies – When you expect sideways movement or are trading volatility.

Each card in the gallery contains:

• Payoff Graph at expiry with profit and loss zones.
• Direction – Bullish, Bearish, Neutral or Volatility-based.
• Type – Debit, Credit or Complex multi-leg structure.
• Composition – Which options are bought or sold and at what strikes.
• Max Profit, Max Loss & Break-even levels.
• Ideal Market Conditions for using the strategy.
• Example (Spot @ 100 – Order Setup) with quantity, strike and premium.
• Strike Distance from ATM – how many points ITM/OTM each leg is from the reference spot.

How to Read the Payoff Graphs

All graphs use a reference ATM spot price of 100 purely for explanation. You can mentally map this 100 to any real instrument such as Nifty, Bank Nifty or stock options.

• X-axis – Underlying price at expiry (left = lower, right = higher).
• Y-axis – Profit (above zero line) and Loss (below zero line).
• Green area – Profit zone of the strategy.
• Red area – Loss zone of the strategy.
• Horizontal mid-line – Zero profit / loss level.
• Vertical ATM line – Current price / ATM reference (100 in our examples).

On the larger payoff chart inside each modal, the axes are labelled “Price at Expiry” and “Profit / Loss”, with a legend clearly showing which area is profit and which is loss.

ATM, ITM & OTM – and Strike Distance from ATM

Every strategy is built from individual option legs. Inside the modal, each leg shows:

• Whether it is a CALL or a PUT.
• Whether you are BUYING (debit) or SELLING (credit).
• The strike price compared to the reference spot (100).
• Whether the option is ITM, ATM or OTM.
• The exact distance in points from spot (e.g., 10 points above/below ATM).

Example with spot at 100:

• A Call 110 is OTM and 10 points above spot.
• A Put 90 is OTM and 10 points below spot.
• A Call 95 is ITM and 5 points below spot.

The “Strike Distance from ATM” box in the modal summarizes this for every leg, making it easier for beginners to see how aggressive or conservative each strike selection is.

Bullish Options Strategies in This Gallery

Use these when you expect the market to move higher or remain above a key level.

• Long Call – Simple bullish bet with limited risk and unlimited upside.
• Short Put – Neutral to bullish credit strategy, profitable if price stays above the strike.
• Bull Call Spread – Buy a lower strike call and sell a higher strike call to reduce cost.
• Bull Put Spread – Credit spread that earns as long as price remains above the put spread.
• Long Calendar with Calls – Neutral to bullish, profiting from time decay on the short leg.
• Bull Condor & Bull Butterfly – Targeted bullish structures around a specific higher price zone.
• Call Ratio Back Spread – Very bullish, with potential unlimited upside.
• Range Forward – Hedging-style combination of long put and short call.

Bearish Options Strategies in This Gallery

Helpful when you expect the underlying to weaken or trend lower.

• Long Put – Direct bearish view with limited risk.
• Short Call – Bearish credit strategy with potentially unlimited upside risk.
• Bear Call Spread – Credit spread that gains if price stays below the short call strike.
• Bear Put Spread – Debit spread that benefits from a moderate price drop.
• Long Calendar with Puts – Neutral to bearish around a chosen strike level.
• Bear Condor & Bear Butterfly – Targeted bearish structures focused on a lower price range.
• Put Ratio Back Spread – Very bearish, designed for strong downside moves.
• Risk Reversal – Synthetic short-style exposure using a combination of options.

Neutral & Volatility-Focused Strategies

Designed for range-bound markets or for trading volatility directly.

• Short Straddle – Sell ATM call and put; profits if price stays near the strike (high risk).
• Long Straddle – Buy ATM call and put; profits from a big move in either direction.
• Short Strangle – Sell OTM call and put; wider profit zone than a straddle, less premium.
• Long Strangle – Buy OTM call and put; cheaper bet on explosive moves.
• Short & Long Iron Condor – Four-leg structures for range or volatility plays.
• Short & Long Iron Butterfly – Similar to condors but centered at the same ATM strike.
• Jade Lizard & Reverse Jade Lizard – Premium-selling combinations with directional tilt.
• Call Ratio & Put Ratio Spreads – Neutral to slightly directional structures with asymmetric risk.
• Batman & Double Plateau – Complex shapes creating specific multi-zone profit profiles.