OPTION TRADING STRATEGIES : There are a number of strategies employed by various investors in order to protect their profits and restrict their losses. Therefore out of all the strategies available different combinations are used according to investors’ objective. Option trading strategies can be for single options or single stock i.e. covered put, covered call, protective put and protective call. On the other hand there are some strategies for multiple options of same type i.e. bull spread, bear spread, and butterfly spread as well as for multiple options for different types i.e. straddle, strangle Single Option or Single Stock: 1. Covered Call: Covered call entails a call writer to write call on the stock that writer holds. When the option seller does not hold the stock, it is called naked call. On the other hand in covered call option seller already owns the security that he sells hence limits the losses. A covered call is suitable in a situation when a stock has...