"Options strategies" decribes the categorization into two different bullish and bearish views on the market, offering the potential for higher rewards with a defined level of risk. It provides an overview of four types of options strategies: Covered Call, Protective Put, Spread (specifically Bull Call Spread and Bear Put Spread), and Combination (including Short Strangle, Short Straddle, Long Butterfly, and Long Strangle).

The Covered Call strategy involves buying stock and selling a call option, generating income from selling the call while benefiting from stock ownership. It is considered a conservative strategy that reduces risk. On the other hand, the Protective Put strategy combines buying stock with buying a put option to limit downside losses and provide a guaranteed selling price.

Spread strategies include the Bull Call Spread and Bear Put Spread. The Bull Call Spread involves buying a call option with a lower strike price and selling a call option with a higher strike price, allowing for capitalization on moderately bullish market movements while reducing risk. Conversely, the Bear Put Spread combines buying a put option with a higher strike price and selling a put option with a lower strike price, providing a hedge against moderately bearish market movements.

Lastly, Combination strategies include Short Strangle, Short Straddle, Long Butterfly, and Long Strangle. These strategies are used for range-bound or breakout market views. For example, the Short Strangle involves selling both an out-of-the-money (OTM) call and an OTM put, generating income from the premiums received, with risk starting when the market breaks beyond the strike prices of the sold options.

Understanding these different options strategies allows investors to tailor their trading approach based on their market outlook and risk tolerance, enabling them to make more informed decisions when trading options.