What is option stretgy

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Accepted Answer

Option strategy refers to a set of techniques used by investors to achieve specific investment goals using options contracts.

Option strategies involve buying and/or selling options contracts to create a specific risk/reward profile.
Common option strategies include covered calls, protective puts, straddles, and strangles.
Investors use option strategies to hedge risk, generate income, or speculate on market movements.
Each option strategy has its own unique characteristics and potential outcomes.
Successful implementation of option strategies requires a deep understanding of options pricing and market dynamics.