Use the interactive, online poster to understand and choose options trading strategies based on different market environments.

Each strategy illustration demonstrates the effect of time decay on the total option premium involved in the position. The poster is arranged by Volatility (rising, falling, neutral) and Market Outlook (bullish, bearish, neutral). For example, a trader with a bearish outlook and an assumption that implied volatility will be falling, might choose a Ratio Put Spread to implement a trading strategy.

By clicking the Ratio Put Spread on the chart, the interactive feature brings up an illustrative strategy explaining the Profit, Loss and Decay characteristics of the strategy as well as when to employ the strategy.

The Options Strategies Poster is a product of CME Group and offered through CME Group's Options Resource Center.