After
Call Ratio Spread option strategy, the next option strategy is
Put Ratio Spread strategy.
What is Put Ratio Spread :
- put : put options
- ratio : different number of option contracts
- spread : one type of options
- put ratio spread : an option trading strategy in Online Options Trading to buy higher strike put options and sell lower strike put options with greater number
Steps to order Put Ratio Spread to Options Broker :
- buy to open put options with higher strike price
- sell to open put options with lower strike price
Profit and loss in Put Ratio Spread :
- profit : higher strike price - lower strike price + net premium
- loss : unlimited
caution : consider the options broker commission.
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