ratio backspread

ratio backspread
Option strategy which involves two short calls (puts) and one long call ( put). LIFFE

Financial and business terms. 2012.

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Look at other dictionaries:

  • Put Ratio Backspread — An investment strategy that combines options to create a spread which has limited loss potential and a mixed profit potential. It s created by combining long and short puts in a ratio such as 2:1 or 3:1 …   Investment dictionary

  • Call Ratio Backspread — A very bullish investment strategy that combines options to create a spread with limited loss potential and mixed profit potential. It is generally created by selling one call option and then using the collected premium to purchase a greater… …   Investment dictionary

  • put ratio backspread — A complex options strategy adopted when one believes a stock price will decline but wants to protect against it rising. Bloomberg Financial Dictionary …   Financial and business terms

  • Backspread — The backspread is the converse strategy to the ratio spread and is also known as reverse ratio spread. Using calls, a bullish strategy known as the call backspread can be implemented.Call BackspreadThe call backspread (reverse call ratio spread)… …   Wikipedia

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