Single Leg Options Trading - The 4 Core Options Strategies to Know

Many traders start with single leg options because they’re simple to understand and easy to manage. But what makes them so effective, and when should you use them? In this article, we’ll explain single leg options trading, how to trade single leg option strategies, and why one leg options still matter today.

What is a single leg option?

​​Single leg options include four basic setups that every trader should know: long call, long put, short call, and short put. Each trade involves buying or selling a single option contract without combining it with another position. This makes them simple to understand and easier to execute than complex multi leg spreads.

Here is a simple infographic that sums up the 4 type of single leg options trades:

A single leg option trade means you have a clear expectation in your mind:

• A long call profits if the stock rises above the strike price.
• A long put profits if the stock falls below the strike price.
• A short call collects premium but risks losses if the stock rallies.
• A short put earns income but carries the obligation to buy the stock if it drops.

In short, single leg options trading focuses on one position at a time. While multi leg strategies may be subtle, one leg options keep things direct, letting traders act fast on simple directional views. And by the way, you can build any scan you want on our screener for options trades based on the strategies above (or try out more complex ones).

When to trade single leg options

Single leg options work best when you have a clear view on where the stock is heading or want to manage risk in a simple way. Traders often use them for:

• Directional bets when expecting a strong move up or down
• Hedging to protect existing stock positions
• Income generation through covered calls or cash secured puts

Because execution is straightforward, single leg options trading suits beginners and anyone who values clarity. The risks are also clear: the premium paid for buyers or the obligation taken if assigned. Timing and volatility expectations often decide when to trade one leg options effectively.

How to trade single leg option strategies

Trading single leg options is simple once you know the steps. Start by picking the underlying stock or ETF, then choose a strike price and expiration that fit your market view. Decide whether to buy or sell a call or put, depending on your bias.

Knowing how to trade single leg option strategies means managing risk and staying disciplined, especially when volatility changes. One leg options reward clarity over complexity.