Posts Tagged ‘what is a ratio spread’

Opportunities in Options: Bullish Corn Ratio Spread

By Michael Sabo • Sep 20th, 2011 • Category: Broker Commentary, Market Updates

by Michael Sabo Agricultural markets can offer some interesting opportunities for a trader during growing season, and this year has been no exception. Going back to July 2010, corn was trading around $4.20 a bushel. Since that time, this market has been in a bullish trend, as less-than-ideal growing conditions have created concerns yields won’t [...]



Constructing a Ratio Spread

By Steve Kauppi • Nov 23rd, 2010 • Category: Broker Commentary, Educational

by 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 [...]



A Corn Options Strategy, No Matter Where the Market’s Headed

By Michael Sabo • Sep 28th, 2010 • Category: Broker Commentary, Market Updates

by Mike Sabo The corn market has been pretty exciting in the past few months and has brought some great trading opportunities. Prices have been moving up substantially. In mid-June through early July, prices had bottomed around $3.50 a bushel, and then the market began heating up. Corn is currently trading around $5. The question [...]



Bullish Gold? Consider a Ratio Spread

By Kristina Zurla Landgraf • Feb 17th, 2010 • Category: Broker Commentary, Market Updates

by Mike Sabo Gold saw a resurgence on Tuesday, February 16 after a period of consolidation, as April gold futures posted their biggest one-day gain in three months, closing above $1,119 an ounce. If you are bullish gold but a little leery of buying futures given the volatility in this market, an options ratio spread [...]