call ratio spread-neutral option strategy

What is it? The whole concept of ratio spread can be deduced from the words it is made of. There are two types of ratio spreads- call ratio spread and put ratio spread. We will be discussing the call spread option in this article. Let’s break it down to have a better understanding. Sometimes, a …

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All about Credit Spreads (explained with examples)

Credit Spreads

A credit spread involves purchase of one option (call or put) & the sale of another option, both with the same maturity and underlying security but with a different strike price. The main reason why this strategy is called a credit spread is because it involves net inflow of premium from the two positions involved …

Read moreAll about Credit Spreads (explained with examples)