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Ratio Put Spread




A bullish strategy that involves the trader being short in more, lower Strike puts than those higher Strike puts he is long in, at a ratio of 3:2 or 2:1. In this way the trader will have an unlimited risk profile with only limited profit potential.

Related Terms:

Bear Put Spread
A strategy in which a trader sells a lower strike put and buys a higher strike ...

Bull Put Spread
A strategy in which a trader sells a higher strike put and buys a lower strike ...

Bear Call Spread
A strategy in which a trader sells a lower strike call and buys a higher strike ...





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