Ratio collars with shares or ratio spreads? Let's say you Buy a 108 call on SPY sell the shares short and sell 2 105 puts for a net debit of zero. It seems like these do work as long as you get out before the sold legs become ITM, although I have not tried this. Conversely, when the ratio becomes 3 to 1 it seems as if it would actually be better to sell one near the money option and buy 3 out of the money options to cover your shares, although this is riskier becuase the market must move substantially in the direction you have speculated or againts the sold position. Small movements in the direction the trader have planned will result in losses on the shares. Any thoughts?