From Barchart: 2024-03-26 07:00:02

A put ratio spread can be created by buying the April 19 put with a strike price of $600 for $17.60 and selling 2 of the April 19, $570-strike puts for $9.15 each. This strategy allows for potential profit if the stock price falls below $570. It is a bearish options strategy that minimizes risk.

By utilizing the put ratio spread strategy, investors can capitalize on a potential downward movement in the stock price while limiting their downside risk. This options strategy provides a way to profit if the stock price decreases but also allows for some flexibility if the stock price remains stable or rises.

Investors should consider the potential risks and rewards of using the put ratio spread strategy before implementing it in their portfolio. This strategy requires a careful assessment of market conditions and the specific stock being traded. It is important to understand the potential outcomes and have a clear plan in place before executing the trade.



Read more at Barchart: Netflix Ratio Spread Targets A Profit Zone Between $540 and $600