A Ratio Spread is an options strategy in which an investor simultaneously holds an unequal number of long and short positions. A commonly used ratio is two short options for every option purchased. A ratio spread would be achieved by purchasing one call option with a strike price of $45 and writing two call options with a strike price of $50. This would allow the investor to … [Read more...]
Ratio Spread [Explained]
The Ratio spread is an options strategy in which an investor simultaneously holds an unequal number of long and short positions. While investing, a commonly used ratio is two short options for every option purchased. It can also be said that the ratio-spread is a strategy in options trading that involves buying some number of options and selling a larger number of other options … [Read more...]