For those who sell puts on the s&p (naked or using vertical put spreads), have you looked at using credit put ratio spreads (short otm puts and long a larger amount of further otm puts)? Credit put ratio spreads allow you to benefit from the occasional market crashes (fat tails) as opposed to getting hurt by them. Thanks.
I think you mean put ratio BACKspreads. If you can establish them so that the shorts cover the longs, ie. credit, you can collect a few cents here and there and be protected from a market crash. Without going into details of the position, your main worry if the position was opened for a credit, is a slow move down, or if opened for a debit, the underlying not moving past the long strike BE.
Can you give an example of these credit backspreads? The skew makes a credit backspread on the PUT side very difficult.