Chapter 06 · Section 6.1

Spread Position

When putting on a call ratio backspread, you:

a) are long and want the market to rally.
• b) are short and want the market to fall.
  No. Although the spread will become profitable if the market falls, it will also profit in the event of a rally.
  c) are neutral and want the market to sit.
  d) are neutral but want the market to move in either direction.