Options
How to Pick a Bullish Strategy From the Option Chain
Date: 2026-08-13 12:00:24
Let’s look at a simple stock chain example — imagine we pull up Intel.
Long call:
If I buy a call near or above the current price, I’m making a directional bet that the stock moves higher. The farther out-of-the-money I go, the cheaper it may look… but the more the stock has to move for that option to matter.
Rule of thumb: cheap doesn’t always mean better. Cheap often means it needs more.
Call spread:
Buy one call and sell another above it. That reduces the cost, but caps the upside — so you ask: am I okay limiting upside if it gives me a more defined trade? Great trade-off if your plan has a target.
Short put spread:
Sell a put below current price and buy another lower put for protection. Now you collect a credit up front and the question becomes: do I believe the stock can stay above my short strike?
Then you still check the plan details: credit collected, max loss, probability of profit, time in the trade, and how many contracts you can trade.
That’s how you create a plan.
#optionstrading #tradingplan #bullish #riskmanagement #optionseducation
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
