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Ratio Put Spread

Buy one put, sell two lower strike puts

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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.

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