Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Ratio Bear Spread – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]

Derivatives


[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Ratio Bear Spread


A variant on a ratio put spread , and a strategy similar to the ratio bull spread in almost all aspects except that in a ratio bear spread, put options are used instead of call options. This strategy involves selling a larger number of out-of-the-money put option and taking a long position in a smaller number of put options. The short-to-long ratio (i.e., the ratio of short put option to long put options) depends on an investor’s own requirements.

This strategy requires no upfront payment and so it is a low-risk strategy. It also profits in case the underlying stays within the range formed by the two strike prices of the short and long options. Other types of a ratio bear spread includes: a bear debit ratio spread, a bear credit ratio spread, and a bear free ratio spread.

The ratio bear spread is also sometimes known as a bear ratio spread or a put ratio spread.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=78ecc7bubm]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*