Chapter 18: Bullish Strategies

In this section

• Introduction to Bullish Strategies
  Explore core bullish option strategies—Long Call, Married Put, and Covered Call—and discover how they can potentially amplify gains and manage risk when you anticipate a rising market.
• The Long Call Strategy
  Explore the mechanics, benefits, and considerations of buying call options for bullish investors, with accessible examples, real-world anecdotes, diagrams, and references to Canadian regulations.
• The Married Put (Protective Put) Strategy - Protective Insurance for Your Long Positions
  Explore how a protective put, also known as a married put, shields your long underlying positions from steep market declines while retaining upside potential.
• The Covered Call Strategy
  Explore the fundamentals, mechanics, benefits, and risks of the covered call strategy, complete with real-world scenarios, practical diagrams, and regulatory considerations for Canadian investors.
• Additional Bullish Strategies: Bull Call Spread & Short Put
  Learn how Bull Call Spreads and Short Puts offer alternative ways to capitalize on moderate or slightly bullish market outlooks, while managing capital and risk effectively within Canadian regulatory frameworks.
• Greek Considerations for Bullish Strategies
  Explore Delta, Gamma, Theta, and Vega in Bullish Option Setups, Plus Best Practices for Managing Risk in Canadian Markets
• Suitability, Risk Tolerance, and CIRO Guidance
  Explore how CIRO rules protect investors by ensuring suitability in bullish option strategies, aligning them with clients’ risk tolerance, net worth, objectives, and time horizon.
• Risk and Reward Analysis for Bullish Strategies
  Explore the key bullish option strategies, including their payoff profiles, break-even points, and best use cases in Canadian markets, along with practical examples, visuals, and regulatory guidance from CIRO.