The BBAE app offers access to a selection of options trading strategies for customers who satisfy the necessary suitability requirements. These strategies are designed for various risk tolerances and market perspectives:
Within the app, you can access the following options trading strategies:
1. Buying a Call: If you believe the underlying stock's price will increase, consider purchasing a call option.
2. Buying a Put: If you expect the underlying stock's price to decrease, consider purchasing a put option.
3. Selling a Covered Call: By selling a call option while owning the underlying stock, you can generate extra income with the potential obligation to sell the stock if its price exceeds the strike price.
4. Selling a Covered Put: Sell a put option while shorting the underlying stock to potentially profit from the premium received if the stock's price stays above the strike price.
5. Selling a Cash-Covered Put: Sell a put option while holding sufficient cash in your account to purchase the underlying stock, with the goal of profiting from the premium received or possibly acquiring the stock at a lower price.
6. Vertical Debit/Credit Spreads & Calendar/Diagonal Spreads: Utilize a combination of options with varying strike prices and/or expiration dates to manage risk and potentially profit from diverse market conditions.
7. Equity Naked Put: Sell a put option without owning the underlying stock, aiming to profit from the premium received, while bearing the potential obligation to buy the stock if its price drops below the strike price.
Please note that BBAE does not currently support index option trading.