Ratio Calendar Combination

Ratio Calendar Combination

A strategy consisting of a simultaneous position of a ratio calendar spread using "calls" and a similar position using puts, where the striking price of the "calls" is greater that the striking price of the "puts".
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Ratio Calendar Combination

An option strategy in which one conducts two calendar spreads, one with calls and one with puts. A calendar spread is the simultaneous purchase and sale of calls or puts with the same strike price but with different expiration dates. A ratio calendar combination (like a calendar spread itself) seeks to profit from price movements in underlying asset.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved