Chapter 06 · Section 6.1
Ratio put spread
When you put on a ratio put spread:
c) you are neutral and want the market to sit.
Yes. When one enters into a ratio put spread, their market outlook is stable. However, they may fear that the market could rally. The limited upside loss is a protection against this.
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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.
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