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Options Glossary - Most Used Terms
Ratio Put Spread
A bullish or stable strategy ion which a trader buys 1 higher strike put and sells two lower strike puts. This strategy offers limited risk and unlimited profit potential.
See Also:
Put: An option contract that gives the holder the right to sell the underlying security at a specified price for a certain fixed period of time.
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.
