The important steps before selecting an options strategy for short-term trading:
The stock market movements are not the same every time. The reward is on riding the ongoing market direction for short-term trading.
How to gauge short-term market direction?
The four popular methods are based on:
1. Technical Analysis (Price Action & Indicators)
2. Dynamic Support & Resistance
3. Volume Profile
4. Options OI data
Based on the above analysis, one can interpret whether the market is likely to trend up or down or remain range-bound.
It is the most important step to decide whether to trade bullish or bearish or neutral options strategies.
The next important view is required on the volatility index or options VIX to decide whether to trade debit option strategies or credit option strategies. If the implied volatility is higher than the historical volatility then the credit option strategies are mostly preferred & if it is lower than the historical volatility then debit option strategies are preferred.
The popular options strategies in up-trending markets are:
Debit Spread:
1. Naked call buy
2. Call Spread (Buy ATM call options & Sell OTM call options)
3. Bullish Calendar (Sell ATM call option of near expiry & Buy ATM call option of far expiry)
4. Call Butterfly (Buy ATM call, sell near OTM calls in double quantity & Buy far OTM call)
Credit Spread:
1. Naked Put sell
2. Sell Put Spread (Sell ATM put options & Buy OTM put options)
3. Sell Put Calendar spread (buy ATM put option of near expiry & sell ATM put option of far expiry)
4. Sell Put Butterfly (sell ATM Put, buy near OTM put in twice quantity & sell far OTM put)
The popular options strategies in down-trending markets are:
Debit Spread:
1. Naked Put buy
2. Put Spread (Buy ATM put options & Sell OTM put options)
3. Bearish Calendar (Sell ATM put option of near expiry & Buy ATM put option of far expiry)
4. Put Butterfly (Buy ATM Put, sell near OTM put in twice quantity & Buy far OTM put)
Credit Spread:
1. Naked Call sell
2. Sell Call Spread (Sell ATM call options & Buy OTM call options)
3. Sell Call Calendar (buy ATM call option of near expiry & sell ATM CE option of far expiry)
4. Sell Call Butterfly (sell ATM call, buy near OTM call in double quantity & sell far OTM call)
The popular options strategies in range-bound markets are:
Debit Spread:
1. Calendar option strategies
Credit Spread:
1. Short Straddle
2. Short Strangle
3. Short Iron condor
4. Short Iron Fly
If you are totally a beginner & just starting with option then you can get your basic knowledge on options strategies from the below mentioned link:
https://zerodha.com/varsity/chapter/introduction-to-options/