Options Glossary

Glossary: Call Ratio Spread

Last Updated: July 12, 2015


Call Ratio Spread

What Does Call Ratio Spread Mean in Options Trading?

A strategy with the goal of profiting from most market condition: up, down, or range-bound by selling more out of the money calls than in the money call are purchased. The risk in this trade is if the underlying appreciates too quickly beyond the expected move implied by the options markets.

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