Ratio spread

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The ratio spread is a strategy in options trading that involves buying a number of options and selling more options of the same underlying stock and same expiration date but at a different strike price. This strategy is used when the options trader thinks that the underlying stock will experience little volatility in the near term.

[edit] See also

• Options spread

[edit] References

• McMillan, Lawrence G. (2002). Options as a Strategic Investment, 4th ed., New York : New York Institute of Finance. ISBN 0-7352-0197-8.