Option strategies for rookies

Cash-Secured put

The setup:

Sell a put, strike price A

Keep enough cash on hand to buy the stock if the put is assigned

Generally, the stock price will be above strike A

***

Covered Call

You own the stock

Sell a call, strike price A

Generally, the stock price will be below strike A

***

Protective Put

You own the stock

Buy a put, strike price A

Generally, the stock price will be above strike A

***

Collar

You own the stock

Buy a put, strike price A

Sell a call, strike price B

Generally, the stock price will be between strike A and strike B