- ratio backspread
- Option strategy which involves two short calls (puts) and one long call ( put). LIFFE
Financial and business terms. 2012.
ratio backspread
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
Options spread — Spread option redirects here. For the American football offensive scheme, see Spread offense. Options spreads are the basic building blocks of many options trading strategies. A spread position is entered by buying and selling equal number of… … Wikipedia
Debit spread — In finance, a debit spread, AKA net debit spread, results when an investor simultaneously buys an option with a higher premium and sells an option with a lower premium. The investor is said to be a net buyer and expects the premiums of the two… … Wikipedia
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