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The Strategy Playbook

50 options strategies with payoff diagrams and the numbers that matter — capital required, probability of profit and expected range. A complete visual reference, curated by GaMa FinTech.

Green = profit zone Red = loss zone Dashed = break-even
Basic & Single-Leg Stock & Synthetics Vertical Spreads Straddles & Strangles Butterflies Condors Ratio Spreads Calendar Spreads Income & Hedging GaMa Advanced
Basic & Single-Leg

Single-option building blocks

The four core options positions plus their cash-secured and index cousins.

Long Call

Buy 1 Call

BullishDebit
ProfitLossBreak-even

Bullish. Buy a call to profit from a rising price with limited, defined risk.

Capital Required
≈ ₹8,000–15,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Above break-even
Max Loss
Premium paid
Max profit: Unlimited

Long Put

Buy 1 Put

BearishDebit
ProfitLossBreak-even

Bearish. Buy a put to profit from a falling price with limited, defined risk.

Capital Required
≈ ₹8,000–15,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Below break-even
Max Loss
Premium paid
Max profit: Large (to zero)

Naked Call

Sell 1 Call (uncovered)

BearishCredit
ProfitLossBreak-even

Bearish to neutral. Sell a call for premium income, with unlimited risk if the price rallies.

Capital Required
≈ ₹1.1–1.5 L (margin)
Prob. of Profit
~60–70%
Avg. Range
Below the strike
Max Loss
Unlimited
Max profit: Premium received

Naked Put

Sell 1 Put (uncovered)

BullishCredit
ProfitLossBreak-even

Bullish to neutral. Sell a put for premium, with large risk if the price falls sharply.

Capital Required
≈ ₹1.1–1.5 L (margin)
Prob. of Profit
~60–70%
Avg. Range
Above the strike
Max Loss
Large (to zero)
Max profit: Premium received

Cash-Secured Put

Sell 1 Put + reserve cash

BullishIncome
ProfitLossBreak-even

Bullish; willing to buy. Sell a put with cash set aside to buy the stock if you are assigned.

Capital Required
Strike × lot (cash reserved)
Prob. of Profit
~65–75%
Avg. Range
Above the strike
Max Loss
Strike − premium
Max profit: Premium received

Cash-Backed Call

Buy 1 Call + reserve cash

BullishDebit
ProfitLossBreak-even

Bullish. Buy a call while reserving cash to purchase the stock at the strike.

Capital Required
Strike cash + premium
Prob. of Profit
~35–45%
Avg. Range
Above break-even
Max Loss
Premium paid
Max profit: Unlimited

Buying Index Calls

Buy 1 Index Call

BullishDebit
ProfitLossBreak-even

Bullish on the index. Profit from a rising index with limited, defined risk (cash-settled).

Capital Required
≈ ₹8,000–15,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Above break-even
Max Loss
Premium paid
Max profit: Large

Buying Index Puts

Buy 1 Index Put

BearishDebit
ProfitLossBreak-even

Bearish on the index. Profit from a falling index, or hedge a portfolio, with defined risk.

Capital Required
≈ ₹8,000–15,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Below break-even
Max Loss
Premium paid
Max profit: Large
Stock & Synthetics

Shares and their option equivalents

Outright stock positions and the option combinations that replicate them.

Long Stock

Buy shares

BullishStock
ProfitLossBreak-even

Bullish. Own shares to profit from price appreciation and dividends.

Capital Required
Full share value
Prob. of Profit
~50%
Avg. Range
Above cost
Max Loss
Down to zero
Max profit: Large

Short Stock

Sell shares short

BearishStock
ProfitLossBreak-even

Bearish. Sell borrowed shares to profit from a decline; risk rises with price.

Capital Required
Margin (short sale)
Prob. of Profit
~50%
Avg. Range
Below entry
Max Loss
Unlimited
Max profit: Down to zero

Synthetic Long Stock

Buy Call + Sell Put (same strike)

BullishSynthetic
ProfitLossBreak-even

Bullish. Combine a long call and short put to mimic owning the stock.

Capital Required
Low net debit/credit + margin
Prob. of Profit
~50%
Avg. Range
Above the strike
Max Loss
Large (to zero)
Max profit: Large

Synthetic Short Stock

Sell Call + Buy Put (same strike)

BearishSynthetic
ProfitLossBreak-even

Bearish. Combine a short call and long put to mimic shorting the stock.

Capital Required
Margin
Prob. of Profit
~50%
Avg. Range
Below the strike
Max Loss
Unlimited
Max profit: Large (to zero)

Synthetic Long Put

Buy Call + Short Stock

BearishSynthetic
ProfitLossBreak-even

Bearish. Pair a long call with short stock to replicate a long put payoff.

Capital Required
Margin + premium
Prob. of Profit
~35–45%
Avg. Range
Below break-even
Max Loss
Premium paid
Max profit: Large (to zero)
Vertical Spreads

Defined-risk directional spreads

Buy one option and sell another at a different strike to cap both cost and risk.

Bull Call Spread

Buy Call + Sell higher Call

BullishDebit
ProfitLossBreak-even

Moderately bullish. Buy a call and sell a higher one to cut cost; capped risk and reward.

Capital Required
≈ ₹4,000–8,000 (debit)
Prob. of Profit
~45–55%
Avg. Range
Between the strikes
Max Loss
Net debit
Max profit: Width − debit

Bull Put Spread

Sell Put + Buy lower Put

BullishCredit
ProfitLossBreak-even

Moderately bullish. Sell a put and buy a lower one for a net credit; defined risk.

Capital Required
≈ ₹20,000–40,000 (max loss)
Prob. of Profit
~60–70%
Avg. Range
Above the short strike
Max Loss
Width − credit
Max profit: Net credit

Bear Call Spread

Sell Call + Buy higher Call

BearishCredit
ProfitLossBreak-even

Moderately bearish. Sell a call and buy a higher one for a credit; defined-risk income.

Capital Required
≈ ₹20,000–40,000 (max loss)
Prob. of Profit
~60–70%
Avg. Range
Below the short strike
Max Loss
Width − credit
Max profit: Net credit

Bear Put Spread

Buy Put + Sell lower Put

BearishDebit
ProfitLossBreak-even

Moderately bearish. Buy a put and sell a lower one to cut cost; capped risk and reward.

Capital Required
≈ ₹4,000–8,000 (debit)
Prob. of Profit
~45–55%
Avg. Range
Between the strikes
Max Loss
Net debit
Max profit: Width − debit

Double Bull Spread

Bull Call Spread + Bull Put Spread

BullishCombo
ProfitLossBreak-even

Bullish. Stack a bull call and bull put spread for a stronger bullish tilt.

Capital Required
≈ ₹8,000–15,000
Prob. of Profit
~50–60%
Avg. Range
Rises to a cap
Max Loss
Defined
Max profit: Credit + width

Bear Spread Spread

Bear Call Spread + Bear Put Spread

BearishCombo
ProfitLossBreak-even

Bearish. Combine a bear call and bear put spread for a stronger bearish tilt.

Capital Required
≈ ₹8,000–15,000
Prob. of Profit
~50–60%
Avg. Range
Falls to a cap
Max Loss
Defined
Max profit: Defined
Straddles & Strangles

Betting on movement (or calm)

Trade the size of the move rather than its direction.

Long Straddle

Buy ATM Call + ATM Put

VolatilityDebit
ProfitLossBreak-even

Big move, either way. Profit from a large move in either direction; ideal ahead of events.

Capital Required
≈ ₹15,000–20,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Beyond ±2–3%
Max Loss
Premium paid
Max profit: Unlimited

Short Straddle

Sell ATM Call + ATM Put

NeutralCredit
ProfitLossBreak-even

Very quiet market. Collect rich premium if price pins the strike; large risk on a move.

Capital Required
≈ ₹1.3–1.6 L (margin)
Prob. of Profit
~55–65%
Avg. Range
Tight, near the strike
Max Loss
Large / undefined
Max profit: Net credit

Long Strangle

Buy OTM Call + OTM Put

VolatilityDebit
ProfitLossBreak-even

Big move, either way. Cheaper than a straddle, but needs a larger move to pay off.

Capital Required
≈ ₹10,000–16,000 (debit)
Prob. of Profit
~30–40%
Avg. Range
Beyond ±3–5%
Max Loss
Premium paid
Max profit: Unlimited

Short Strangle

Sell OTM Call + OTM Put

IncomeNeutral
ProfitLossBreak-even

Range-bound market. Collect premium if price stays in a range; large risk on a sharp move.

Capital Required
≈ ₹1.1–1.4 L (margin)
Prob. of Profit
~65–75%
Avg. Range
Within ~±3–4%
Max Loss
Large / undefined
Max profit: Net credit
Butterflies

Pinpoint, low-cost structures

Three-strike structures that profit when price finishes near — or far from — the body.

Long Call Butterfly

Buy 1 / Sell 2 / Buy 1 Calls

NeutralDebit
ProfitLossBreak-even

Pins the middle strike. A low-cost bet that price finishes at the body; defined risk.

Capital Required
≈ ₹3,000–7,000 (debit)
Prob. of Profit
~25–40%
Avg. Range
Near the middle strike
Max Loss
Net debit
Max profit: Width − debit

Long Put Butterfly

Buy 1 / Sell 2 / Buy 1 Puts

NeutralDebit
ProfitLossBreak-even

Pins the middle strike. Put-based butterfly with the same tent payoff around the body.

Capital Required
≈ ₹3,000–7,000 (debit)
Prob. of Profit
~25–40%
Avg. Range
Near the middle strike
Max Loss
Net debit
Max profit: Width − debit

Short Call Butterfly

Sell 1 / Buy 2 / Sell 1 Calls

VolatilityCredit
ProfitLossBreak-even

Breaks out of a range. A small credit that profits if price moves beyond either wing.

Capital Required
≈ ₹25,000–40,000 (max loss)
Prob. of Profit
~60–70%
Avg. Range
Beyond either wing
Max Loss
Width − credit
Max profit: Net credit

Short Put Butterfly

Sell 1 / Buy 2 / Sell 1 Puts

VolatilityCredit
ProfitLossBreak-even

Breaks out of a range. Put-based short butterfly; profits on a move past the wings.

Capital Required
≈ ₹25,000–40,000 (max loss)
Prob. of Profit
~60–70%
Avg. Range
Beyond either wing
Max Loss
Width − credit
Max profit: Net credit

Long Iron Butterfly

Buy ATM Straddle + Sell OTM wings

VolatilityDebit
ProfitLossBreak-even

Breakout expected. A debit iron fly that profits when price moves outside the wings.

Capital Required
≈ ₹6,000–12,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Beyond either wing
Max Loss
Net debit
Max profit: Wing width − debit

Short Iron Butterfly

Sell ATM Straddle + Buy OTM wings

IncomeDefined Risk
ProfitLossBreak-even

Pins one level. A credit iron fly that profits if price stays near the centre.

Capital Required
≈ ₹20,000–35,000 (max loss)
Prob. of Profit
~45–55%
Avg. Range
Narrow, near centre
Max Loss
Wing width − credit
Max profit: Net credit
Condors

Wide-range, four-strike structures

Like butterflies, but with a flat profit (or loss) plateau across a wider zone.

Long Call Condor

Buy / Sell / Sell / Buy Calls

NeutralDebit
ProfitLossBreak-even

Range-bound. A debit condor that profits when price stays between the short strikes.

Capital Required
≈ ₹4,000–9,000 (debit)
Prob. of Profit
~50–65%
Avg. Range
Between the short strikes
Max Loss
Net debit
Max profit: Width − debit

Long Put Condor

Buy / Sell / Sell / Buy Puts

NeutralDebit
ProfitLossBreak-even

Range-bound. Put-based condor with the same wide plateau of profit in the middle.

Capital Required
≈ ₹4,000–9,000 (debit)
Prob. of Profit
~50–65%
Avg. Range
Between the short strikes
Max Loss
Net debit
Max profit: Width − debit

Long Condor

Reverse condor (long the wings)

VolatilityDebit
ProfitLossBreak-even

Breakout expected. Profits if price finishes outside the outer wings; loss in the middle.

Capital Required
≈ ₹6,000–12,000 (debit)
Prob. of Profit
~35–45%
Avg. Range
Beyond the outer wings
Max Loss
Net debit
Max profit: Defined

Short Condor (Iron Condor)

Sell OTM Call Spread + Put Spread

IncomeDefined Risk
ProfitLossBreak-even

Range-bound. The popular defined-risk income trade; profits in a wide central range.

Capital Required
≈ ₹30,000–50,000 (max loss)
Prob. of Profit
~65–75%
Avg. Range
Within ~±3–5%
Max Loss
Width − credit
Max profit: Net credit
Ratio Spreads

Uneven longs and shorts

Buy and sell different quantities of options for low cost — with a twist in the risk profile.

Long Ratio Call Spread

Sell 1 Call + Buy 2 higher Calls

BullishBackspread
ProfitLossBreak-even

Sharp rally expected. A call backspread: low cost with unlimited upside and a small mid-zone loss.

Capital Required
≈ ₹30,000–60,000 (margin)
Prob. of Profit
~35–45%
Avg. Range
On a big up-move
Max Loss
Limited (mid-zone)
Max profit: Unlimited

Short Ratio Call Spread

Buy 1 Call + Sell 2 higher Calls

NeutralCredit
ProfitLossBreak-even

Mildly bullish to flat. Profits in a mild up-move or flat tape; risk builds on a strong rally.

Capital Required
≈ ₹90,000–1.2 L (margin)
Prob. of Profit
~60–70%
Avg. Range
0 to ~+3%
Max Loss
On a sharp rally
Max profit: At the short strike

Long Ratio Put Spread

Sell 1 Put + Buy 2 lower Puts

BearishBackspread
ProfitLossBreak-even

Sharp fall expected. A put backspread: low cost with large downside profit and a small mid-zone loss.

Capital Required
≈ ₹30,000–60,000 (margin)
Prob. of Profit
~35–45%
Avg. Range
On a big down-move
Max Loss
Limited (mid-zone)
Max profit: Large (to zero)

Short Ratio Put Spread

Buy 1 Put + Sell 2 lower Puts

NeutralCredit
ProfitLossBreak-even

Mildly bearish to flat. Profits in a mild dip or flat tape; risk builds on a sharp fall.

Capital Required
≈ ₹90,000–1.2 L (margin)
Prob. of Profit
~60–70%
Avg. Range
0 to ~−3%
Max Loss
On a sharp fall
Max profit: At the short strike

Covered Ratio Spread

Long Stock + 1×2 Call ratio

BullishRepair
ProfitLossBreak-even

Recover, then cap. Add a call ratio to long stock to speed recovery up to the short strike.

Capital Required
Stock value (low added cost)
Prob. of Profit
~55–65%
Avg. Range
Up to the short strike
Max Loss
Stock downside
Max profit: Capped at short strike

Stock Repair

Long Stock + 1×2 Call ratio

BullishRepair
ProfitLossBreak-even

Recover a losing stock. A covered ratio used to recover a losing long position for little or no cost.

Capital Required
Existing stock (~zero cost)
Prob. of Profit
~55–65%
Avg. Range
Up to the short strike
Max Loss
Stock downside
Max profit: Capped at short strike
Calendar Spreads

Trading time and volatility

Same strike, different expiries — profiting from the difference in time decay.

Long Call Calendar Spread

Sell near Call + Buy far Call

NeutralDebit
ProfitLossBreak-even

Quiet near the strike. Sell a near-term call and buy a longer-dated one to harvest time decay.

Capital Required
≈ ₹8,000–15,000 (debit)
Prob. of Profit
~55–65%
Avg. Range
Near the strike
Max Loss
Net debit
Max profit: Peaks at strike

Long Put Calendar Spread

Sell near Put + Buy far Put

NeutralDebit
ProfitLossBreak-even

Quiet near the strike. Put-based calendar; profits from the faster decay of the front leg.

Capital Required
≈ ₹8,000–15,000 (debit)
Prob. of Profit
~55–65%
Avg. Range
Near the strike
Max Loss
Net debit
Max profit: Peaks at strike

Short Call Calendar Spread

Buy near Call + Sell far Call

VolatilityCredit
ProfitLossBreak-even

Big move expected. A reverse calendar that profits when price moves away from the strike.

Capital Required
≈ ₹8,000–15,000
Prob. of Profit
~40–50%
Avg. Range
Away from the strike
Max Loss
Around the strike
Max profit: Limited (credit)

Short Put Calendar Spread

Buy near Put + Sell far Put

VolatilityCredit
ProfitLossBreak-even

Big move expected. Put-based reverse calendar; profits on a move away from the strike.

Capital Required
≈ ₹8,000–15,000
Prob. of Profit
~40–50%
Avg. Range
Away from the strike
Max Loss
Around the strike
Max profit: Limited (credit)
Income & Hedging

Working your stock and protecting it

Overlay options on a stock position to earn income or buy insurance.

Covered Call

Long Stock + Sell Call

IncomeNeutral-Bullish
ProfitLossBreak-even

Flat to mildly up. Earn premium on shares you own; upside is capped above the strike.

Capital Required
Stock value
Prob. of Profit
~60–70%
Avg. Range
Up to the call strike
Max Loss
Stock downside − premium
Max profit: Premium + gain to strike

Covered Put

Short Stock + Sell Put

IncomeNeutral-Bearish
ProfitLossBreak-even

Flat to mildly down. Earn premium on a short position; downside gain capped at the strike.

Capital Required
Short margin
Prob. of Profit
~55–65%
Avg. Range
Down to the put strike
Max Loss
Rising price (large)
Max profit: Premium + gain to strike

Covered Strangle

Long Stock + Sell Call + Sell Put

IncomeNeutral-Bullish
ProfitLossBreak-even

Fairly valued stock. Overlay a short strangle on stock for extra premium; adds downside risk.

Capital Required
Stock value + put margin
Prob. of Profit
~55–65%
Avg. Range
Between the strikes
Max Loss
Large on a fall
Max profit: Premiums + gain to call

Collar

Long Stock + Buy Put + Sell Call

HedgeNeutral
ProfitLossBreak-even

Protect gains. A low-cost hedge: a protective put financed by a covered call.

Capital Required
Stock value (cheap hedge)
Prob. of Profit
~50–60%
Avg. Range
Between put and call
Max Loss
Floored at put strike
Max profit: Capped at call strike

Protective Put

Long Stock + Buy Put

HedgeBullish
ProfitLossBreak-even

Insure a long position. Buy a put as insurance on stock you own; keeps the upside open.

Capital Required
Stock value + put premium
Prob. of Profit
~45–55%
Avg. Range
Above break-even
Max Loss
Floored at put strike
Max profit: Unlimited
GaMa Advanced

Two extra favourites

A couple of nuanced credit structures we like for their skewed risk profiles.

Jade Lizard

Sell OTM Put + Sell OTM Call Spread

IncomeNeutral-Bullish
ProfitLossBreak-even

Neutral to bullish. The credit exceeds the call-spread width, so there is no upside risk.

Capital Required
≈ ₹1.0–1.3 L (margin)
Prob. of Profit
~65–75%
Avg. Range
Above lower break-even
Max Loss
On a sharp fall
Max profit: Total net credit

Batman

Call ratio + Put ratio (twin peaks)

NeutralAdvanced
ProfitLossBreak-even

Stays near current level. Paired ratio spreads that form two profit humps around the price.

Capital Required
≈ ₹40,000–70,000
Prob. of Profit
~55–65%
Avg. Range
Two zones around ±2–3%
Max Loss
On a large move
Max profit: At either peak

Illustrative examples only. Payoff shapes are schematic and the figures for capital, probability of profit and range are approximate — they vary with strikes, expiry, implied volatility, lot size and live market conditions. This playbook is educational and is not investment advice or a recommendation to trade any strategy. Options carry significant risk.

We trade these — automatically

GaMa FinTech runs structures like these as fully automated, risk-managed systems. See how, or learn the fundamentals first.

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