Learn about backspreads, a trading strategy involving more purchased calls or puts than sold ones. Understand its workings and types for effective trading.
Put Ratio Backspread limits your downside during sharp pullbacks while keeping you positioned to profit when a significant ...
Is the backspread always a bear strategy? Most traders think of the put ratio backspread in this way. Why? Because it involves puts. But in fact, it is not a bear strategy, but a volatility strategy.
A reverse calendar spread involves buying a short-term option and selling a long-term option on the same security, commonly used for strategic trading positions.