In this strategy, there are two puts, for example, one long and one short, two calls for example, one long and one short and four strike prices with all having similar expiration dates.
This is a very popular strategy that allows generating income while reducing some of the risks of being long on a stock at the same time. As per this strategy, the option trader must be ready to sell their shares at the agreed strike price.
In this strategy, the options trader shall purchase a share and a Put option for such an equivalent number of shares simultaneously. More than profit-making, it can be termed as a capital preserving strategy.
In this strategy, the options trader has to simultaneously purchase a call and a put option on the same underlying asset. The strike price and expiry date are the same for both options.
This is another neutral strategy involving lower volatility in the price of the underlying asset. It is a combination of a bull spread strategy and a bear spread strategy.