There are various options strategies used in trading.

Long Call

This strategy consists of buying a Call in the hope that the value of the underlying security will increase. Buying a Call allows to buy a determined number of shares (normally, but not always, 100) at a determined price (strike) before (in some cases only at) a set date (expiration day – normally on the Friday following the third Thursday of the month).
 

Long Put

This strategy consists of buying a Put in the hope that the value of the underlying security will decrease. Buying a Put allows to sell a determined number of shares (normally, but not always, 100) at a determined price (strike) before (in some cases only at) a set date (expiration day – normally on the Friday following the third Thursday of the month).
 
Covered Call

In this strategy an investor sells a Call while at the same time owning an equivalent number of shares of the underlying stock. The objective is to earn income in neutral markets. If the stock is purchased simultaneously with selling the Call, the strategy is commonly referred to as a "buy-write".
 
Long Call Spread

This strategy consists of the purchase of a Call on a particular underlying stock, while simultaneously writing a Call on the same underlying stock with the same expiration month, at a higher strike price. Both the buy and the sell are opening transactions, and are always the same number of contracts. This is a moderately bullish strategy used to capitalize on a modest increase in price of the underlying stock. To make the maximum profit on the strategy, both of the options need to be in-the-money at expiration – have intrinsic value.
 
Short Call Spread

This strategy consists of the purchase of a Call on a particular underlying stock, while simultaneously writing a Call on the same underlying stock with the same expiration month, at a lower strike price. Both the buy and the sell are opening transactions, and are always the same number of contracts. This is a moderately bearish to neutral strategy. To receive the maximum profit on a credit spread, both of the options have to be out-of-the money at expiration – expire worthless.
 
Long Put Spread

This strategy consists of the purchase of a Put on a particular underlying stock, while simultaneously selling a Put on the same underlying stock with the same expiration month, at a lower strike price. Both the buy and the sell are opening transactions, and are always the same number of contracts. This is a moderately bearish strategy used to capitalize on a modest decrease in price of the underlying stock. To make the maximum profit on the strategy, both of the options need to be in-the-money at expiration – have intrinsic value.
 
Short Put Spread

This strategy consists of the purchase of a Put on a particular underlying stock, while simultaneously selling a Put on the same underlying stock with the same expiration month, at a higher strike price. Both the buy and the sell are opening transactions, and are always the same number of contracts. This is a moderately bullish to neutral strategy. To receive the maximum profit on a credit spread, both of the options have to be out-of-the