In this chapter, we learn more advanced option strategies with explanations,

1. Collar: A collar is a strategy that involves buying an underlying asset, buying a protective put option and selling a covered call option. The goal is to protect the portfolio against a market decline while earning income from selling call option. An example would be: An Investor owns a stock XYZ and wants to protect it from a market decline, so he buys a put option with a strike price slightly lower than the current price, and sell a call option with a strike price slightly higher than the current price.
2. Straddle: is a strategy that involves buying a call option and a put option with the same strike price and expiration date. The goal is to profit from a large move in either direction of the underlying asset. An example would be :An Investor believes that the price of a commodity is going to be highly volatile but is unsure of the direction of the movement. A trader/investor buys a call option with a strike price at the current price and a put option(PE) with the same strike price and expiration date.
3. Strangle: is similar to a straddle, but with different strike prices for the call and put options. The goal is to profit from a large move in either direction, but the options will be less expensive than a straddle. An example would be: An Investor believes that a stock price is going to be highly volatile but is unsure of the direction of the movement. He buys a call option(CE) with a strike price slightly higher than the current price and a put option with a strike price slightly lower than the current price.
4. Butterfly Spread: A butterfly spread is a strategy that involves buying and selling options at different strike prices, but with the same expiration date. The goal is to profit if the underlying asset price stays within a certain range. An example would be: An Investor believes that the price of a stock will be range-bound for the next few months. He buys a call option at a lower strike price, sells two call options at a higher strike price, and buys a final call option at an even higher strike price.
5. Iron Butterfly: An Iron Butterfly is a strategy that involves buying a call option(CE) and a put option(PE) at the same strike price and also selling a call option and a put option at different strike prices. The goal is to make a profit when the underlying asset price stays within a specific price range. An example would be: An Investor is unsure of the direction of the market but believes that a stock is going to be highly volatile within a specific price range. He buys a call option with the same strike price and expiration date as a put option, sells a call option with a higher strike price, and sells a put option with a lower strike price
6. Calendar Spread: A calendar spread, also known as horizontal spread, is a strategy that involves buying and selling options with different expiration dates but with the same strike price. The goal is to profit from changes in volatility over time. An example would be: An Investor believes that the price of a stock will stay relatively stable but that volatility will increase in the next few months. He buys a call option with an expiration date in a few months and sells a call option with an expiration date in the near future.

These are just a few examples of the many different option strategies available. Each strategy has its own set of risks and potential rewards, and traders should carefully consider their investment objectives and risk tolerance before selecting a strategy