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OPTION STRATEGIES PART - 2

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OPTION STRATEGIES PART - 2 We will examine four market outlooks with trading strategies corresponding to each: Bullish -  The expectation of an increase in price. This category has two subcategories: * Moderately bullish-Although the outlook is for higher prices, the increase is not likely to be dramatic. * Extremely bullish  - Expecting a dramatic, explosive increase in price (generally anticipated to occur in the short term) Bearish -  The expectation of a decrease in price. This category has two subcategories : * Moderately bearish - Although the outlook is for lower prices, the decrease is not likely to be dramatic. * Extremely bearish - Expecting a dramatic sell-off in the stock (generally anticipated to occur in the short term) * Neutral (front spread) - Expecting little price movement over a given time period. Neutral strategies enable the trader to make money in a market where prices remain the same or move little. * Volatile (back spre