Sell call option and buy put
The strikes do not have to be consecutive and the gaps between them do not need to be equal. Put strike price, Call strike price, and the Underlying price all must be the same.
Option expiry for all the legs should be the same. Buy Put, Sell Sell call option and buy put at same strike, Buy underlying enter underlying price.
Put strike price, Call strike price, and the Underlying price all must be sell call option and buy put. The strikes do not have to be consecutive and the gaps between them to not need to be equal. The strike price in the far month does not need to equal the strike price in the near month.
This strategy is no longer supported. Although it can still be created as a custom strategy. Put Call Spread vs. Same as above but sell in trading window. Option expiry for all the legs should be the same Conversion: Sell Call at even higher strike. All series must be the same expiry month.
Call Strip Buy sell call option and buy put three and eight Calls. Put Strip Buy between three and eight Puts. Call Put Spread vs. Buy Call, Sell Put at same strike. As above but Sell in trading window. Sell near month Call, Buy any far month Call at different strike. Sell Put, Buy Put and Call at higher strike. Buy between two and four straddles in one or more expiration months entered as Buy between three and eight Calls.
Buy between three and eight Puts. Sell Call, Buy two Calls at higher strike. Sell Put, Buy two Puts at lower strike.
If not for the higher margin requirements of writing options most people might have preferred writing to buying option.
Also, adding to what Nik says, you may want to consider writing options when there lesser number of days to expiry as you can take the advantage of an accelarated time decay. Selling options you will be exposed to unlimited downside risk and fixed upside profit and buying options you will be exposed to unlimited profit and limited risk.
One thing as a trader that is important is to do trades which you understand and which matches your trading personality. Some traders see option shorting as high risk trades while some find it very suitable.
Before employing any options strategy it is important to understand ins and out of it. You may read this link where I have explained how options work: Which is better--Selling call option or buying put option? Theoritically both look same for novice like me? You can consider buying options when there are more number of days to expiry. Both premiums would not be same. Put premium will be less than call premium.
Buy put option in earlier of the month and sell call options when you are close to the end of the month. This sell call option and buy put because volatity Vega of the option is interrelated to time value Thetaboth gets reduced when you are nearing the end of the month. Less volatility is good for selling options.
More volatility is good for buying option since sell call option and buy put time is there during month start, it gives ample chance for volatility effect to take place In selling option, you incur heavy margins being blocked when compared to buying sell call option and buy put, the money which you may be interested in entering some other contracts.
So you need to wait until you find a suitable time to square off your selling and get the margin money released. Shorting naked options selling call option here is accompanied by high risk, you may be thinking that you are right about the market, but the market may deceive you. So do not enter selling options which do not have good amount of liquidity. You may not find a buyer to square off your short position atleast not at better prices what you are looking for for illiquid contracts.
You may incur huge loss if market moves against you. I am sure this will throw some light on your understanding.