|A strategy using all puts or all calls whereby the trader buys OTM options in a ratio of 3:2 or 2:1 to the ITM options he sells. In this way the trader is always long in more options than those he is short in.
Applying to derivative products, a strategy in which there is a simultaneous purchase and sale of ...
Ratio Put Spread
A bullish strategy that involves the trader being short in more, lower Strike puts than those ...
Ratio spreads are an evolution of the bull call or bear put spread. They combine long ...
« View the Stock Market Dictionary »
Latest Financial Advice
- Impact of News on Trader’s Psychology and Market Trends
- Overconfidence Bias in Stock Trading: A Critical Analysis
- Mastering Mindfulness Practices for Traders
- Impact of Market Volatility on Individual Psychology
- Leveraging Intuition in Stock Trading: A New Approach
- Mastering Mental Strategies for Effective Swing Trading
- Harnessing Behavioral Finance to Anticipate Market Trends
Free Investment Advice
|Get free stock market tips and investing advice by subscribing to our newsletter:
* Your information will not be shared or sold.
- Trading Basics
- Investing 101
- Investing Essentials
- Understanding the Risks
- Beginning to Trade
- Trading Strategies
- Trading Psychology
- Retirement Investing
- Personal Finance
- Advanced Trading
- Penny Stocks
- FOREX Trading
- Commodity Futures
- Stock Tips
- Going Public
- Real Estate
- Research Tools
- Stock Spam
- Stock Market Dictionary