You can use options (equity options, index options, ETF options etc) in various ways to profit from a rise or fall in the underlying instrument. The most basic options strategies you can use employ calls and puts as a low risk method of generating a profit on price direction. You can also use options as form of insurance in wide variety of circumstances. Most likely you have insurance on your car or home. The insurance policy protects you in the event of an accident or damage. Options give you a similar form of safety for trading the markets. They also increase your leverage by allowing you to control the shares of a specific stock without committing large amounts of capital from your trading account.

In today's highly volatile financial markets, options give you flexbility with your investing that is not always available with traditional stock investing. You can use options to protect  from a decline in a long stock position. You can also use options to buy a stock at a lower price (using puts), sell a stock at a higher price (using calls), or generate additional income against a long or short stock position. You can also use option strategies to profit from a move in the price of the underlying asset regardless of market direction.

The market will generally trade in three different directions: Up, Down & Sideways. You should analyse potential market movements when you are making a trade. If the market is going up, you can buy calls, sell puts or buy stocks. Do you have any other available choices? Yes, you can combine long and short options and underlying assets in a wide variety of strategies. These strategies limit your risk while taking advantage of market movement.

Here are some options strategies that can be applied to generating proon market movement: