Ratio Spread

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Ratio Spread

Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.

Ratio Spread

An option strategy that involves buying a certain number of option contracts and selling a different number (according to a stated ratio) of options on the same underlying asset with the same expiration date but with a different strike price. One hopes to profit from the change in price of the underlying asset over the life of the options, but a ratio spread is most useful when one does not expect the price to be volatile.
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With Royston Drenthe in the side Everton have scored every 36 minutes this season, without him, that ratio spreads to 149 minutes.
The application's strategies include basis trades, curve trades, 'butterflies' and ratio spreads tailored specifically to commodity and financial futures.
After a chapter on basic concepts and vocabulary, the workbook explains puts and calls, the covered call, and directional and nondirection dependent strategies, and looks at volatility, ratio spreads and backspreads, and current technology available to professional options traders.
Autospreader and Autotrader additions: Autospreader gives traders more control by providing them with the ability to dynamically freeze and unfreeze their working orders, adjust their payup ticks on the fly, create ratio spreads and display their spread prices in fractions.
All of a sudden you've got wide ratio spreads in a planetary step-gear automatic.
Common strategies include basis trades, curve trades, butterflies and ratio spreads tailored specifically to commodity and financial futures.