Put Ratio Vertical Spread
Components
Short two OTM put options and long one ITM put option.
Risk / Reward
Maximum Loss: Unlimited on the downside and limited to the net premium paid on the upside.
Maximum Gain: The difference between the two strike prices less the premium paid for the position.
Characteristics
When to use: When you are neutral on market direction and bearish on volatility.
Comments (1)
AUMKAR
August 3rd, 2010 at 1:29pm
This one is the strategy, one can use for the one or two days.
Add a Comment