Strategy

Ratio Put Spread

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Buy one put, sell two lower strike puts

What is Ratio Put Spread?

Ratio Put Spread A bearish-to-neutral strategy where you buy one higher-strike put and sell two (or more) lower-strike puts. Maximum profit occurs at the short strike. The extra short put creates risk below the lower breakeven if uncovered. Often used to collect premium while maintaining downside exposure to a moderate decline.

Complete Definition

A bearish-to-neutral strategy where you buy one higher-strike put and sell two (or more) lower-strike puts. Maximum profit occurs at the short strike. The extra short put creates risk below the lower breakeven if uncovered. Often used to collect premium while maintaining downside exposure to a moderate decline.

Related Terms

Ratio Spread Ratio Call Spread Front Spread Back Spread

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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