Bull Put Spreads
A Bull Put Spread is a type of option strategy where the option investor expects the price of the underlying instrument to remain above the sold strike price, but in case the instrument falls in value a a Put is bought at the next strike price down for protection. The Strategy is explained below.

If XYZ is trading at $20 and the option investor is expecting the price to remain above this level then they might Sell a Put option at $20.00 and Buy a Put option at $17.50. Selling the Put option at $20 would net the option investor $1 in premium and buying the $17.50 Put option would cost the option investor 0.50c. so a net credit of 50c per share is left. As long as the stock price is above $20 at expiration the contracts will expire worthless and the option investor will make $50 (50c per share x 100). The maximum risk incurred on this trade is $250 - premium = $200. Giving the option investor a return of 25% return for the month on the money risked.

Bear Call Spreads
A Bear Call Spread is a type of option strategy where the option investor expects the price of the underlying instrument to remain below the sold strike price, but in case the instrument rises in value a a Call is bought at the next strike price up for protection. The Strategy is explained below.

If XYZ is trading at $20 and the option investor is expecting the price to remain below this level then they might Sell a Call Option at $20.00 and Buy a Call option at $22.50. Selling the Call Option at $20 would net the option investor $1 in premium and buying the $22.50 Put option would cost the investor 0.50c. so a net credit of 50c per share is left. As long as the stock price is below $20 at expiration the contracts will expire worthless and the option investor will make $50 (50c per share x 100). The maximum risk incurred on this trade is $250 - premium = $200. Giving the option investor a return of 25% return for the month on the money risked.

Iron Condors
An Iron Condor incorporates both strategies above doing a Bear Call spread and a Bull Put Spread on the same stock. This strategy can be used if the option investor expects the stock to remain within a certain range until the options expire. Under these conditions the option investor would receive the premiums from both Calls and Puts receiving a net premium of $1 ($2 Sold Options - $1 Bought Options). So the maximum risk of this trade is $250 - $100 = $150. So the return on this investment could be 66% per month on the money risked. The reason the risk is lower on this trade is because the stock price cannot both be higher than the sold Call AND lower than the sold Put at expiry.

Out Of The Money Strategy
Each of these strategies can be placed 1 stike or more out of the money, which means that the stock price of XYZ would have to fall at least to $17.50 or rise to at least $22.50 before it reaches the sold strike prices. This builds in a buffer of protection for the option investor and reduces the risk of the trade going against them.