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Ratio Spread

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A ratio spread is an
strategy where a greater number of
with lesser
are sold against a smaller number of
of greater delta, preferably for a net
The result is a position with risk to only one side, and a small window of high profit potential.
There are two types: a
which aims to eliminate downside risk, and a
which aims to eliminate upside risk. Ratio spreads typically have a very high probability of profit.

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