Call Ratio Back Spread - Option Strategy (Using MarketXLS)
Published by MarketXLS Limited
About this tutorial
Template: https://marketxls.com/template/call-ratio-back-spread/ Book A Demo: https://marketxls.com/book-demo Website: https://marketxls.com/ Author: Rishav Jain ------------------------------ The Call Ratio Back-Spread is a net premium credit strategy that involves selling put options at a higher strike price and buying a higher number of put options at a lower strike price of the same underlying stock. Options are an important derivative class that allows traders to take positions and generate profits with a limited amount of risks. Traders going long on options have to pay a premium whereas those going short/ writing the option charge premium. Apart from this, there are multiple option trading strategies that enable traders to further reduce their downside risk and increase the chances of profit-making based on different scenarios.