A put ratio spread, specifically a put front-ratio strategy, is a vertical spread strategy where an investor sells more options than they buy. A front-ratio spread routes the trade for a credit, giving investors a higher probability of success than back-ratio spreads which are routed for debits. Watch Mike as he goes through his checklist before placing the strategy!
0:00 Introduction
0:43 Quick Review
3:27 If Stock Goes Up
4:38 If Stock Stays the Same
5:39 if Stock Goes Down
6:57 Breakeven Calculation
9:10 IV Factor
9:57 When We Close
12:17 Takeaways
Click the link below to learn more about ratio spread:
https://www.tastytrade.com/shows/best-practices/episodes/ratio-spreads-01-07-2020
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