backspread
Options ratio trade
A backspread is an options trading strategy where you sell one or more options at one strike price and buy a greater number of options at a different strike price, both with the same expiration.
The position profits from large price movements in the underlying asset.
Call backspreads benefit from sharp upward moves; put backspreads from sharp downward moves.
She set up a call backspread expecting volatility after the earnings announcement.
Symbol denoting variation
- gammaGreek alphabet's third
- thetaEighth Hellenic letter
- vegaVolatility sensitivity metric
- rhoGreek alphabet's seventeenth
sensitivity · exposure · neutral · positive · negative · acceleration · decay · curvature
Comparative numerical relation
short · strike · premium · credit · debit · bullish · bearish · vertical
Suggested without stating
- historicalOf documented times
- realizedBecame aware of
- skewTwist from straight
- smilePleased facial expression
surface · expansion · contraction · crush · spike · stochastic
delta
Symbol denoting variation
rho · sensitivity · exposure · neutral · positive · negative · acceleration · decay · curvature · hedging
ratio
Comparative numerical relation
long · short · strike · premium · credit · debit · bullish · bearish · vertical · diagonal
implied
Suggested without stating
- historicalOf documented times
- realizedBecame aware of
- skewTwist from straight
smile · surface · expansion · contraction · crush · spike · stochastic
unlimited
Without bounds or restrictions
breakeven · payoff · diagram · reward · asymmetric · downside · upside · management · exposure · margin