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Put Ratio Spread

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A traditional Put Ratio Spread is the simultaneous
of a
against a
in which the
intersect. This would often be referred to as a 2:1 put ratio, because you are technically selling two short puts against one
The goal of this strategy is to eliminate risk to the upside, while simultaneously creating a small zone of extremely high potential potential. An advanced trader with adequate capital might alter this ratio to something like 3:1 or 3:2, for example.
typically have a very high probability of profit.

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