Option Samurai Blog
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Reverse Iron Albatross Spread - Trading Big Breakouts with Defined Risk
The reverse iron albatross spread is a debit options strategy designed for big moves in either direction. It’s structured like a wider reverse iron condor, with strikes placed further apart.
Trade Idea – Call Zebra on MSTZ
Lately, I’ve been keeping an eye on MSTZ, a 2x inverse ETF tied to MicroStrategy (MSTR), as an interesting proxy trade around crypto sentiment.
Reverse Iron Butterfly - Setup, Payoff, and When to Use It
Traders use the reverse iron butterfly when they expect a big move-but don’t know which way. This strategy blends calls and puts to cap risk while betting on volatility.
Synthetic Put – What It Is, How It Works, and Why Traders Use It
A synthetic put is a way to recreate the payoff of a regular put—long or short—using a mix of stock and options.
Synthetic Short Straddle – A Closer Look at Short Call and Short Put Variants
A synthetic short straddle gives you the same payoff using either a short call or a short put setup—each with a different position in the underlying.
Synthetic Straddle – How to Create One Using Long Calls or Long Puts
A synthetic straddle is a way to mimic a classic long straddle without using both a call and a put.
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.