OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Put Ratio Spread'

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What is Put Ratio Spread in Options Trading ?

Put Ratio Spread
An option strategy which makes money if the underlying decreases in price within an expected range and experiences a loss if the underlying decreases in price beyond the expected range. This position is created by buying an In The Money (ITM) or At The Money (ATM) put and selling more further Out of The Money (OTM) puts such that an overall credit is received.

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