Options Glossary

Glossary: Put Ratio Spread

Last Updated: July 12, 2015


Put Ratio Spread

What Does Put Ratio Spread Mean in Options Trading?

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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