An options strategy using either puts or calls, in which one buys some options and then sells a different amount of options.
A term most commonly used to describe the purchase of an option(s), call or put, and the writing of a greater number of the same type of options that are out-of-the-money with respect to those purchased. All options involved have the same expiration date. For example, buying 5 XYZ May 60 calls and writing 6 XYZ May 65 calls. See also Ratio write
Holding an unequal amount of long and short options positions. Two short, and one long is a popular ratio spread strategy.
An option strategy whereby the amount of futures or options contracts purchased is not equal to the amount of contracts sold.
an option strategy that involves buying different amounts of puts and calls
Strategy involving the sale of an amount of call options in excess of the amount of a long call option held, or the sale of put options in excess of the amount of a long put option position held.
This refers to an option combination where one holds a different amount of units of long options than short options. It is sometimes used as a hedge strategy. Example, you're long call options or underlying asset and the market begins to drop, you could sell two or more call options for each call option you own. In the case of being long the underlying, you could sell as many call options as necessary to achieve a negative delta.
Is position where you sell more options relative to the number of options purchased. Compare to Backspread.
Option strategy using either puts or calls. The trader purchases a certain amount of options and then sells a larger amount of out of the money options.
Buying a specific quantity of options and selling a larger quantity of out of the money options.
a ratio spread involves buying different amounts of similar options with differing strike prices. The purchase of an in-the-money option is financed by the selling of out-of-the- money options. Conversely, the out-of-the- money options are financed by selling in-the- money options.
A spread transaction in which two or more related options are traded in a specified proportion. Ratio spread forms when the number of options bought differ from the number of options sold. The spread can vary .
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of out-of-the-money options.
A Ratio Spread is implemented by buying a quantity of options and selling a larger quantity of options that are more out-of-the-money. This option strategy can be implemented with puts or calls.
This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike price.
Any spread where the number of long market contracts and the number of short market contracts are unequal.
The ratio spread is a strategy in options trading that involves buying a number of options and selling more options of the same underlying stock and same expiration date but at a different strike price. This strategy is used when the options trader thinks that the underlying stock will experience little volatility in the near term.