Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

Unlike the comparatively timid long call spread, the call ratio backspread is engineered to capitalize on a breakout bullish move in the underlying stock. The trade combines sold and purchased call ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The put ratio backspread inverts the paradigm of the long ratio put spread. Rather than limited reward and high risk, the trader is positioned to enjoy limited risk and a reward that's potentially ...

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.

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.

Last week we started a new Real World Trading series, this time covering the put ratio Backspread. With these articles, we want to help traders get a better understanding of particular strategies and ...

A call backspread is set up to take advantage of a bullish outlook on an underlying. The position can be net debit or net credit spread. This week, we discuss how a net credit position may impact the ...

The Nifty has moved 1,300 points in just five trading sessions. SBI moved 45 percent in the last five trading days. This doesn’t end here, about 60 of the 141 stocks in F&O moved more than the Nifty ...

This column mainly examines some of the standard option trades, such as bull call spreads and covered calls. Today's edition looks at one of the less common option strategies: a put ratio backspread.