Explore Your Options by Tom Gentile
THE RATIO BACKSPREAD
Is there any other strategy besides calls and puts that allows you to limit risk and have unlimited upside potential?>
There is, and Iíll show you how you can use a directional strategy called the ratio backspread. Ratio backspreads are one way to be directional on the markets, while at the same time creating a low-cost or even no-cost trade in the process. Ratio backspreads, just like calls and puts, are bullish or bearish depending on your outlook, and utilize one expiration date in the future as well ...