Chapter 06 · Section 6.1
Put on a ratio call spread
When you put on a ratio call spread:
c) you are neutral and want the market to sit.
Yes. When the market sits, this position will experience a profit. Substantial market moves in either direction will cause the position to lose money.
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d) you are neutral but want the market to move+ in either direction.
a) you are long and want the market to rally.
b) you are short and want the market to fall.