There are three basic types of options strategies, and the fall under the categories of bullish, bearish, and neutral. When investors first get into options, they usually start with bullish options strategies. There is more than one type of bullish strategy, and the various types can be categorized by how bullish they are. Some are mildly bullish, others moderately so, while the long call is the most bullish of all.

Of the many options strategies available to investors, the long call is probably the most well known. This is because most new investors start out using this strategy. A long call is used when an investor predicts a rise in the value of an asset. The long call is considered to be the most bullish of options strategies, and is easy for new traders to understand, which makes it popular for newcomers to the market.

Bull spreads, which are moderately bullish options strategies, requires a little more knowledge. These spreads use a combination of a long call with a short put in order to create a transaction that spreads out the cost of the investment. The long call uses a higher strike price, while the long put is set at a lower strike price. Both options are on the same stock. Bull spreads can also employ other types of transactions. These are known as vertical spread options strategies, and are used in both bullish and bearish markets.

In a mildly bullish strategy, the trader can make a profit as long as there is no actual drop in the value of the asset underlying the option while the option can be exercised. These options strategies are often used by writers, or seller, of options.

For new investors in the options market, options strategies using spreads may be too complex, but given enough time and practice with trading options it is possible to start adding them to your repertoire. All new investors are best to begin with simple strategies and work their way into the more complicated ones as they gain a better understanding of how options trading functions.

Bullish options strategies, like any investment, come with certain risks. There are varying levels of risk just as there are varying levels of profit to be had. When getting into options trading, using bullish strategies is a great way to start; but simply because many investors do start there doesn’t mean it’s the only place to begin. Talk to an investment advisor about all the possible approaches when you are ready to get started.