Welcome to the Options Strategies collection. While traditional spread betting is "directional" (you need the market to move in your favor to win), Options give you the power of probability.
In these courses, we move beyond just "guessing the direction." We teach you how to start acting like the "House" (the insurance company) rather than the gambler.
Two Ways to Trade Options
We categorize our strategies into two distinct styles. Understanding the difference is key to your success:
1. Buying Options & Debit Spreads (Speculation & Growth)
Strategies: Long Calls (Bullish), Long Puts (Bearish), Bull Call Spreads, and Bear Put Spreads.
The Goal: To profit from a directional move in the market.
The Benefit: You have "Limited Risk." The most you can lose is the premium you paid. Using Debit Spreads (Bull Call/Bear Put) allows you to lower your cost and risk even further compared to buying a single option.
2. Selling Options & Credit Spreads (The Income Engine)
Strategies: Short Puts, Bull Put Spreads, and Bear Call Spreads.
The Goal: To generate "Premium Income." You are essentially getting paid to wait for the market to stay above (or below) a specific level.
The Benefit: High Probability. You can be "wrong" about the exact market direction and still make a profit, provided the market stays within your "safety zone" before expiry.
Why Options + Spread Betting?
Combining these tools is a "cheat code" for UK and Ireland traders. Normally, options income is taxed heavily as Income Tax or Capital Gains Tax. By using the IG Spread Betting platform, we apply these sophisticated Wall Street strategies inside a tax-free wrapper.
Which path should you choose?
If you want to strictly limit losses: Stick with Defined Risk strategies. Start with Long Calls/Puts or Debit and Credit Spreads. These allow you to control expensive assets like the US 500 for a very low, fixed cost with a "hard stop" built into the trade.
If you want consistency: Focus on our Short Put strategy on the US 500. By following our strict risk management guidelines, you can use this flagship strategy to generate consistent monthly "credits" in your account.
Your Learning Path
We recommend watching the videos in this specific order to build your knowledge layer-by-layer:
Long Call/Put Basics: The fundamentals of speculation.
Short Put Mechanics: Your introduction to generating income.
Spreads Masterclass: Mastering the Bull Put, Bull Call, Bear Put, and Bear Call setups.
π‘οΈ Options Strategy Cheat Sheet
Use this table to choose the strategy that best fits your current market view and risk tolerance.
Strategy | Market Outlook | Trade Type | Risk Profile | Probability of Profit |
Very Bullish | Debit (Pay) | Limited | Lower (Needs big move) | |
Very Bearish | Debit (Pay) | Limited | Lower (Needs big move) | |
Moderately Bullish | Debit (Pay) | Limited | Moderate | |
Moderately Bearish | Debit (Pay) | Limited | Moderate | |
Neutral to Bullish | Credit (Receive) | Substantial* | Highest | |
Neutral to Bullish | Credit (Receive) | Defined/Limited | High | |
Neutral to Bearish | Credit (Receive) | Defined/Limited | High |
*Note: While Short Puts have substantial risk if the market crashes, we manage this professionally through strict position sizing and the risk management guidelines found in our Masterclass.
Understanding the Trade-Offs
When choosing a strategy, keep these two rules of thumb in mind:
Buying Options (Debits): You have a lower probability of profit because the market must move significantly in your direction to cover the cost of the option. However, your Return on Investment (ROI) can be very high if that move happens.
Selling Options (Credits): You have a much higher probability of profit because you can win if the market goes up, stays sideways, or even drops slightly (for Bull Puts). You are replacing "unlimited upside" for "higher consistency."
Option Trade Execution Checklist
β‘ Ready to place your first trade? Use our IG Platform Execution Checklist to ensure your deal ticket is set up correctly and your risk is managed professionally.
π§ͺ Practice Before You Trade (Risk-Free)
We strongly recommend that all our students start by practicing these strategies in a simulated environment. This allows you to master the IG deal ticket, understand price fluctuations, and test your "Option Income Engine" without risking a single penny.
Switch to a live account only once you are comfortable with the platform and your strategy execution.
π Free Strategy Call
Trading theory is only 10% of the journey. The remaining 90% is mastering strategy application, market psychology, and capital preservation under live conditions.
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