OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Put Ratio Backspread'

« Back to the Options Trading Glossary

What is Put Ratio Backspread in Options Trading ?

Put Ratio Backspread
An option trading strategy in which credit is received by the trader by writing some In The Money (ITM) or At The Money (ATM) puts against buying more Out of The Money (OTM) puts. With this strategy most gains are made if the underlying stock breaks to downside, and limited profit is made in upside movement.




Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Put Ratio Backspread! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/put-ratio-backspread/