Ratio Calendar Combination
(redirected from Ratio Calendar Combinations)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.
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