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Definition of 'Ratio Spread'
An options strategy in which an investor simultaneously holds an unequal number of long and short positions. A commonly used ratio is two short options for every option purchased.
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Investopedia explains 'Ratio Spread'
A ratio spread would be achieved by purchasing one call option with a strike price of $45 and writing two call options with a strike price of $50. This would allow the investor to capture a gain on a small upward move in the underlying stock's price. However, any move past the higher strike price ($50) of the written options will cause this position to lose value. Theoretically, an extremely large increase in the underlying stock's price can cause an unlimited loss to the investor due to the extra short call.
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Search results for 'Ratio Spread'
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http://www.investopedia.com/university/option-greeks/greeks2.asp
... Call Credit Spread, Negative. Call Debit Spread, Positive. Call Ratio Spread, Negative. Put Ratio Spread, Positive. Call Back Spread, Positive. Put Back Spread, ...
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http://www.investopedia.com/university/option-greeks/greeks5.asp
... Call Credit Spread, Negative. Call Debit Spread, Positive. Call Ratio Spread, Negative. Put Ratio Spread, Negative. Put Back Spread, Positive. Call Back Spread, ...
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http://www.investopedia.com/university/option-greeks/
... potential reward resides in the strategy, whether it is a long put or call, or a complex strategy like a strangle, butterfly spread or ratio spread, among many ...
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http://www.investopedia.com/university/option-greeks/default.asp
... potential reward resides in the strategy, whether it is a long put or call, or a complex strategy like a strangle, butterfly spread or ratio spread, among many ...
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http://www.investopedia.com/university/option-greeks
... potential reward resides in the strategy, whether it is a long put or call, or a complex strategy like a strangle, butterfly spread or ratio spread, among many ...
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http://www.investopedia.com/university/option-greeks/greeks3.asp
... Put Debit Spread, Positive. Call Credit Spread, Positive. Call Debit Spread, Negative. Call Ratio Spread, Negative. Put Ratio Spread, Negative. Calendar Spread, ...
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http://www.investopedia.com/university/option-greeks/greeks4.asp
... Call Credit Spread, Positive. Call Debit Spread, Negative. Call Ratio Spread, Positive. Put Ratio Spread, Positive. Put Back Spread, Negative. Call Back Spread, ...
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http://www.investopedia.com/articles/optioninvestor/02/111202.asp
... furthermore, this skew works well when you are buying a just out-of-the-money call and selling a larger number of deep out-of-the-money calls (ratio spread). ...
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http://www.investopedia.com/articles/optioninvestor/10/modified-butterfly-spread.asp
... butterfly; while the standard butterfly spread almost invariably involves a favorable reward-to-risk ratio, the modified butterfly spread almost invariably ...
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http://www.investopedia.com/articles/forex/10/spread-pip-potential-pairs-day-trading.asp
... Based on the data the EUR/USD and the GBP/USD have the lowest spread-to-movement ratio, although traders must update the figures at regular intervals to see ...
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