Discussion in 'Options' started by asdfghj7, Mar 25, 2009.
XYZ is currently at 15
We buy one 3 month 15 put for 3pt and
sell two 12.5 puts for 1.5 each
Stock price not relevant
Option premium not relevant
This spread has different names
It's a put front spread
It's a ratioed put vertical spread
It's a butterfly, missing one leg
But I'd go with 'front spread'
Isn't this just a simple 1x2 put spread? I assume it's the same expiry...
It's a ratio spread. I learned that right here from reading other posts
"I've been recently been developing a strategy generally focused around the idea of a RATIO SPREAD trade where an ITM/ATM/or OTM call or put is purchased by the buyer, who finances it with 2 further OTM options in the same month or buying one option and financing it with a higher strike further out month option."
maybe this helps : http://www.optiontradingpedia.com/
Separate names with a comma.