From Theory To Practice - April 26, 2021 - Directional Bias with Ratio Spreads

published 2 weeks ago by tastytrade, Inc.

Ratio Spreads are without question one of the most flexible strategies that we use at tastytrade. The fact that you can be profitable in both directions, while still capitalizing on a high probability trade, is unmatched in terms of versatility. Normally when we choose a Ratio Spread, we opt to use the out-of-the-money strikes, but with our potential trade in KR, we see there could be a time when moving slightly in-the-money can make a good deal of sense.

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