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reverse iron butterfly PnL

Reverse Iron Butterfly - Setup, Payoff, and When to Use It

Tutorials

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 typical P&L

Synthetic Put – What It Is, How It Works, and Why Traders Use It

Tutorials

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

Synthetic Short Straddle – A Closer Look at Short Call and Short Put Variants

Tutorials

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

Synthetic Straddle – How to Create One Using Long Calls or Long Puts

Tutorials

A synthetic straddle is a way to mimic a classic long straddle without using both a call and a put.

ratio backspreads

Back Ratio Spread - A Lesser-Known Strategy for Advanced Options Traders

Tutorials

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.

GRPN stock price

Trade Idea - Short Put Ladder on GRPN

Gianluca's Trades

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 strategy

Covered Straddle - How It Works and When to Use It

Tutorials

The covered straddle strategy combines long stock, a short call, and a short put to generate premium income

cash settled options

Cash Settled Options - When and Why They Make Sense

General

Cash settled options offer a way to trade without dealing with the hassle of physical delivery.

options market maker

Options Market Maker - What It Is and Why the Options Market Needs a Maker

General

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?

reducing risk options

Risk Management in Options Trading - From Best Practices to Practical Tips

GeneralTutorials

Find out how risk management in options trading works, with common best practices and our experience-based tips.