From Barchart: 2024-04-04 07:00:02

To create a put ratio spread, investors can buy the April 19 put with a $415 strike price for $4.00 and sell 2 April 19 puts with a $405 strike price for $1.75 each. This strategy allows investors to profit if the stock price falls, with limited risk and potential for higher returns.

The put ratio spread can be a profitable options strategy for investors looking to benefit from a decrease in stock price. By combining buying and selling put options at different strike prices, investors can potentially generate income while limiting potential losses.

Investors should carefully consider market conditions and their risk tolerance before engaging in options trading strategies like the put ratio spread. It is important to have a clear understanding of how the strategy works and the potential outcomes in different market scenarios.



Read more at Barchart: Microsoft Ratio Spread Targets A Profit Zone Between $395 and $415