OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Put Ratio Backspread'

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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.

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