Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The put ratio backspread inverts the paradigm of the long ratio put spread. Rather than limited reward and high risk, the trader is positioned to enjoy limited risk and a reward that's potentially ...

Is the backspread always a bear strategy? Most traders think of the put ratio backspread in this way. Why? Because it involves puts. But in fact, it is not a bear strategy, but a volatility strategy.

Is the backspread always a bear strategy? Most traders think of the put ratio backspread in this way. Why? Because it involves puts. But in fact, it is not a bear strategy, but a volatility strategy.

This column mainly examines some of the standard option trades, such as bull call spreads and covered calls. Today's edition looks at one of the less common option strategies: a put ratio backspread.

In the past two weeks, we discussed how to set up ratio spread and backspread to take advantage of a bullish view on an underlying. This week, we discuss how the same two strategies, this time using ...

The universal truth of the financial market is volatility. Investors who are inexperienced fear volatility as they think it can lower the value of their investments. Volatility indeed lowers the ...

Last week we started a new Real World Trading series, this time covering the put ratio Backspread. With these articles, we want to help traders get a better understanding of particular strategies and ...

I now have more color on that gigantic SPY put trade (720K contracts) executed last Thursday on ISE: It was a 120K by 240K put backspread rolled from August to December, executed on behalf a major ...