Options Glossary, Ratio Backspread, Backspread,Spread
Uncovered Options Trading System
101 signals were generated in 2017-20 97 delivered profit
Options Glossary - Most Used Terms
Ratio Backspread
A delta neutral spread where an uneven amount of contracts are bought and sold with a ratio less than 2 to 3. Optimally no net credit or net debit occurs.
See Also:
Backspread: A delta-neutral spread composed of more long options than short options on the same underlying instrument. This position generally profits from a large movement in either direction in the underlying instrument.
Spread: A trade in which two related contracts/stocks/bonds/options are traded to exploit the relative difference in price change between the two. A trading strategy in which a trader offsets the purchase of one trading unit against another.