The diagonal put spread buys a long term put and sells a short term put. There are various relationships of days to expiration, deltas and price that the trader needs to decide between. Optimizing the ...

A ratio spread is a strategy used in options trading, in which a trader will hold an unequal number of buy and sell options positions on a single underlying asset at once. The ratio spread strategy is ...

Similar to a long call spread, the call ratio spread is implemented when a trader expects modest upside from the underlying security. However, the stakes are higher in this variation, as the trader ...

The put ratio spread is a variation on the theme of a more traditional bear put spread. Rather than buying one put and selling one put at a lower strike, the trader sells a greater number of puts than ...

Picture this. You have a positive outlook on an underlying. The price has just broken above the resistance level, and you are convinced that this is not a false breakout. You have also identified an ...