10. Calendar spread
A calendar spread is also known as horizontal or time spread. This strategy is solely used to earn money from the security, which price trades sideways There are quite a few stocks that have this kind of price trend. This strategy is established by selling at the money call or put option, which has a shorter time to expiry, and buying at the money call and put option, which has a longer time to expiry. This strategy merely generates toney from the time value of the option. The option that has a shorter time to expiry depreciates the time value faster than the option that has a longer time to expiry.
Usually, the option that has a shorter time to expire is left to expire worthlessly. The total money that you receive after closing this position will be more than the total money that you have paid out when opening this position.
With these 10 strategies, you can use them to earn money from the upside and downside market and also the market that trades sideways.