Understanding option selection, having an idea about delta, and being able to calculate the savings, values, and gains of the various options form the essential foundation needed to utilize any of the ideas presented here. By beginning with straddles and strangles you are able to play around with using puts and calls as a risk management strategy without feeling like you are betting the farm. It is important that you have a grasp of choosing the right options to work in tandem with your spot, futures, or margined position.
