Constructing a Ratio Spread
By Steve Kauppi • Nov 23rd, 2010 • Category: Broker Commentary, Educationalby Steve Kauppi A ratio spread is a strategy that allows you to take advantage of a market breakout, even if you don’t know which direction it will be. You can benefit from a range-bound market, and use option theta, or time decay, in your favor. The ratio spread involves holding an unequal number of [...]
