If you’re a real estate investor who’s ever wondered whether your knack for timing the market could translate to Wall Street, options trading strategies might just be your next big win.
Since Google’s 2025 Core Update, even the search for “options trading strategies” has become a competitive sport. Let’s make it fun, smart, and practical — just like your best property flips.
So, how many options trading strategies should you have in your 2025 arsenal?
After scouring the latest research, we’re hittin’ ya are 10 options trading strategies that are dominating the conversation — and might just help you hedge, profit, and sleep better at night.
If you’re looking for a primer on options trading before reading further, check out our beginner’s guide to options trading.
1. Covered Call
You own the stock. You sell a call option against it.
The result?
You pocket the premium, and if the stock stays flat or rises just a bit, you keep both the shares and the cash. It’s the “collect rent while the property appreciates” move of options trading strategies.
But if the stock rockets, you might have to sell at the strike price. Still, you got paid for waiting. It’s a classic among options trading strategies — and for good reason.
2. Protective Put
Think of this as insurance for your portfolio.
You buy a put option on a stock you already own. If the market tanks, the put gains value, offsetting your losses. It’s one of those options trading strategies that’s perfect for volatile times — like, say, pretty much every week since January 2025.
You pay a premium, but sometimes peace of mind is worth it. (I once paid for a home inspection that found nothing. Still slept better.)
3. Iron Condor
Here’s where options trading strategies get whimsical.
The iron condor is all about betting a stock will stay in a range. You sell a call spread and a put spread at the same time, collecting two premiums. If the stock doesn’t break out, you win… like a landlord happy with steady tenants and no drama.
Watch out, though: If the market stampedes, losses can pile up. Use this when things are calm, not when the Fed surprises everyone on a Thursday.
4. Straddle
You expect fireworks, but you don’t know which way they’ll go…
Buy a call and a put at the same strike price. If the stock moves big, you profit — regardless of direction. This is one of those options trading strategies for earnings season or when Elon Musk tweets something wild.
It’s pricey, but sometimes you gotta pay up to play both sides.
5. Strangle
Like a straddle, but cheaper.
You buy a call and a put, but at different (out-of-the-money) strike prices. It costs less, but the stock needs to move more for you to profit.
Among options trading strategies, the strangle is for those who want to catch big swings on a budget.
Just remember: If the market naps, both options can expire worthless. Eek.
6. Bull Call Spread
You’re bullish, but not betting the farm.
Buy a call at a lower strike and sell one at a higher strike. You limit both your risk and your reward, but it’s cheaper than just buying a call. This is the “I want upside, but I’m not greedy” move in options trading strategies.
Perfect for when you think a stock will rise, but not soar.
7. Bear Put Spread
Flip the bull call spread upside down.
Buy a put at a higher strike, sell a put at a lower strike. You profit if the stock drops, but your risk and reward are both capped.
This is one of those options trading strategies that’s great for hedging when you sense storm clouds but don’t want to panic-sell your portfolio.
It’s like buying flood insurance before hurricane season.
8. Calendar Spread
Here’s where options trading strategies get a bit nerdy.
Sell a short-term option and buy a longer-term one at the same strike price. You profit from time decay — the short-term option loses value faster. If you’ve ever watched paint dry and thought, “I could make money from this,” calendar spreads are for you.
They shine when you expect little movement now, but big news later.
9. Butterfly Spread
This one’s for the perfectionists.
You use 3 strike prices: buy one low, sell two at the middle, buy one high. Your profit peaks if the stock lands right in the middle at expiration. Among options trading strategies, the butterfly is like calling the final sale price of a house to the dollar.
Low risk, low reward, but oh so satisfying when you nail it.
10. Ratio Spread
Feeling fancy?
Try a ratio spread: Buy one option, sell more than one at a different strike. It’s a way to collect extra premium, but if the stock moves too much, risk can balloon. This is one of those options trading strategies for experienced traders — or the bold.
Don’t try this with your down payment fund.
Why Options Trading Strategies Matter in 2025
Since January 2025, options trading strategies have become the talk of the town. With 58 million contracts traded daily and $3 trillion in notional value, the market’s never been livelier.
Volatility’s up, AI is everywhere, and even REITs are making a comeback. Options trading strategies let you profit from up, down, or sideways moves — something even the best real estate can’t always promise.
Wrapping Up: Which Options Trading Strategies Are Right for You?
Well, there’s no one-size-fits-all. Some options trading strategies suit the cautious, others the bold…
- Want steady income? Covered calls.
- Expecting fireworks? Try a straddle or strangle.
- Betting on boredom? Iron condor or butterfly.
Just remember: Options trading strategies are tools, not magic. Use simulators, start small, and don’t risk your rent/mortgage money.
Want to get started with one of these strategies, risk free? Learn how you can simulate options trading in our guide.