Options Glossary

Glossary: Put Ratio Backspread

Last Updated: July 12, 2015


Put Ratio Backspread

What Does Put Ratio Backspread Mean in Options Trading?

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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