How do I construct this... I'm long 1 corn futures (example), which is showing a profit. I want to turn that +10 futures into a long call ratio spread so that I lock in some profit, with some window of opportunity to the upside... what is the correct way to do this with options? thanks
http://www.cashflowheaven.com/cws.pdf (PDF page 44) (Book page 25) You might consider Metamorphosis (PDF page 50)(Book page 44)to a Collar(Bull Vertical), a Butterfly, or Slingshot Hedge, as an alternative to a Call Ratio Spread, depending on your outlook of the underling price movement/Risk.