But from there, you can construct more calibrated option strategies that fit your expectations about how a stock will perform. Here are five option strategies for advanced investors and how they work.

Options allow traders to profit with basic or advanced strategies, based on calls and puts, but are not risk-free, exposing granular risks.

Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility.

The ABCs of trading options Before diving into more advanced strategies, it's essential to understand the key components of options trading. After all, you have to learn to walk before you can run.

For today’s trader, navigating the markets means embracing innovation while managing risk with discipline and clarity.

5 options trades for advanced traders 1. Bull call spread In a bull call spread, a trader buys a call and sells a call at a higher strike price, both with the same expiration.