Low Volatility Option Strategies

Low Volatility Option Strategies

With regards to low volatility option strategies, an option trader wants as little movement as possible in the underlying security. When that happens, the option trader stands to profit from it. There are a variety of low volatility option strategies that one can choose from. The entire list is found below.

1. Execute A Calendar straddle Profit from low volatility
2. Execute A Call Ratio Spread : Profit from little volatility
3. Execute A Condor : Profit from low volatility
4. Execute A Long call butterfly spread : Profit From Range Bound Markets
5. Execute A Long call ladder or bull call ladder : Range Bound Markets
6. Execute A Long put butterfly : profit from low volatility conditions
7. Execute A Long put ladder : Profit from low volatility conditions
8. Execute An Iron butterfly to profit from low volatility
9. Execute An Iron Condor: A combination of bull put spread and bear call spread
10. Execute A Put Ratio Spread : Anticipate low volatility
11. Ratio Call Write : Take advantage of low volatility
12. Ratio Put Write : Take advantage of low volatility
13. Short guts : Profit from low volatility
14. Short strangle(Sell strangle) : Anticipating Low Volatility
15. Uncovered straddle/Short straddle/Sell straddle: Profit From Range Bound Trading
16. Variable Ratio Writes : Earn premium with little volatility