Knowing what to do in the stock market is vital. You’ll be able to improve your investment strategy, take informed risks, and reduce your losses with the right information, and learning a few options strategies could help.

1. The Covered Call

One strategy you should know about is the covered call. This strategy, like many others, is popular because people get to reduce their risk while improving their chances of making a profit. The idea is to buy an underlying stock, but be sure to add a write call option on everything you purchase. The only thing some folks don’t like is that the stock must be sold at the set price. It’s a good strategy if you don’t know what might happen with a stock and want to cover your bases.

2. The Iron Condor

According to Tastytrade, an iron condor is considered “directionally neutral.” That may not sound too important, but it can be. This strategy allows you to reduce your risks as you play in the stock market. The strategy is a benefit when you know or suspect a particular stock won’t move one way or the other. If you’ve noticed a low volatility pattern, then this option might work for you. Just to let you know, if things work out in your favor, you’ll earn a net credit.

3. The Married Put

Another interesting option strategy is the married put. The plan here is to purchase a stock or some other kind of asset as you normally would, except you’ll also be buying put options. The amount of put options you get has to be equal to the assets you’ve purchased. Doing this gives you the control to sell your assets at a specific strike price. The married put works almost like an insurance policy because you’re protecting yourself against major asset price drops.

4. The Bull Call

Sometimes, investors want to reduce the amount spent on a particular transaction. Some would call this a bullish strategy, but it is a popular one nonetheless. What you’ll be doing is accepting specific strike prices of assets, and after amassing a specific number of assets, sell the exact same number of calls. The calls have to be sold at a higher strike price. The strategy is used by investors when they see assets that may rise moderately. They won’t have to buy a naked option, which is usually quite pricey, but they’ll still be able to get into the action.

5. The Bear Put Spread

Okay, so the bear put spread option strategy is considered a bearish option because it means the investor believes the stock is going to decline. Those who’ve done the research and are confident that the company isn’t doing too hot will love this path. The idea here is you’ll be purchasing put options, and you’ll be willing to accept those options at their strike prices. With your other hand, you’ll be selling the same amount of puts, but you’ll be selling those at a much lower strike price. Both will be riding on the same asset and will be expiring at the same time. This will only help you if you’re right.

Hopefully, you find yourself in the position of utilizing these option strategies and do so well. Working in the stock market does require that you try many strategies, but they’ll help you be a better investor.