Ratio Spread Speed

Ratio Spreads, especially using Put options, are <a href="https://ontt.tv/VtVt8" target="_blank">very flexible strategies</a> that allow you to establish a bullish bias in the marketplace, while still maintaining a good amount of protection to the downside. Due to the structure of these strategies, if the stock rallies shortly after <a href="https://ontt.tv/9YSE6" target="_blank">trade entry</a>, the position could quickly accumulate positive profits. This is because as the stock moves higher and higher, the options are moving further and further out-of-the-money, as we see with our XLF position.