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.
c) are neutral and want the market to sit.
• d) are neutral but want the market to move in either direction.
  Yes. The call ratio backspread will lose money if the market sits. The market outlook one would have in putting on this position would be for a volatile market, with greater probability that the market will rally. Continue