Option Samurai Blog
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Managing Naked Call Options: Risks and Strategies of This Option Strategy
Selling a call is a common strategy in options trading, and there are many ways to do it. Naked call options involve selling calls without holding the underlying asset, a move that promises profits...
Benefits and Risks of the Short Calendar Spread Options Strategy
If you're looking for advanced options strategy ideas, the short calendar spread might catch your interest. This is a trade that combines selling a longer-term call and buying a shorter-term one at...
Building a Synthetic Covered Call Strategy - What You Need to Know
Options trading can give investors unique opportunities to manage risk and achieve growth. The synthetic covered call is a strategy that combines the benefits of traditional covered calls with no...
A Backtested Approach to Using Bollinger Bands in Options Trading - Part 2
Following the results we showed in the first part of our series on Bollinger bands, let us show you through real-life examples how you can use this indicator to set up profitable trades. We have...
A Historical Look at the Most Successful Options Traders
Reading about how the most successful options traders, like Edward Thorp, with his unmatched 20% annual return over three decades, have interpreted the markets can offer valuable insights to anyone...
Poor Man's Covered Call - A Smart Choice for Neutral to Bullish Investors
Sometimes trading can require a high capital amount, so it is not surprising that the poor man's covered call strategy has collected quite some popularity online. This approach offers a way to use...
What Is (and How to Use) the Batman Option Strategy?
The batman option strategy is basically a marketing name for the combination of two vertical ratio spreads (four legs with two positions each—both short and long) and can be a nice idea to consider...
Playing with Expiration Dates - A Guide to Calendar Spread Options
While most options strategies feature contracts with the same expiration date, calendar spread options let you "play" with the time concept. This strategy - very popular in options and futures...
A Simple Explanation of Extrinsic Value in Options
You often hear that the value of an option tends to decay with time, but why does this happen? To understand the concept, you will need to learn more about the extrinsic value in options. This...
A Few Tips to Deal with Pin Risk Options
With options expiring every week, the possibility that your underlying will be close to the strike price on the day your contracts expire is something you should take into account. These cases are...