Option Samurai Blog
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Back Ratio Spread - A Lesser-Known Strategy for Advanced Options Traders
The back ratio spread is an options strategy that traders use when they expect a strong move in a stock’s price. It involves buying more options than selling, creating a position with limited risk and potentially unlimited profit.
Trade Idea - Short Put Ladder on GRPN
After a volatile earnings reaction, Groupon (GRPN) caught my attention this week. Following a surprisingly strong earnings report, the stock surged over 45% in a single day and is now trading above $26.
Covered Straddle - How It Works and When to Use It
The covered straddle strategy combines long stock, a short call, and a short put to generate premium income
Cash Settled Options - When and Why They Make Sense
Cash settled options offer a way to trade without dealing with the hassle of physical delivery.
Options Market Maker - What It Is and Why the Options Market Needs a Maker
An options market maker plays a silent but essential role in keeping the options market liquid and efficient. But what does an options market maker do, and why is their presence necessary?
Risk Management in Options Trading - From Best Practices to Practical Tips
Find out how risk management in options trading works, with common best practices and our experience-based tips.
Bull Call Spread: What You Should Know Before Trading Options with This Strategy
Learn how the bull call spread, a classic debit spread strategy, can help you invest with a bullish sentiment.
Synthetic Short: An Options Alternative to Short Selling a Stock
A synthetic short offers traders a flexible way to bet against a stock without short selling. But how does a synthetic short position work, and what makes it different from simply short selling shares?
What Are Synthetic Options and How Do They Work?
Synthetic options provide traders with an alternative way to manage risk and capitalize on specific market opportunities.
GTD Orders Explained: A Guide for Traders
A GTD order, or Good-Till-Date order, is a straightforward trading tool that can simplify stock or options strategies.