Ratio Put Spread
Bearish strategy with unlimited downside risk.
Expert
Market Outlook
bearish
Family
multi-leg
Capital Req
high
Risk Profile
medium
Strategy Overview
Key characteristics and when to use
Structure
Buy 1 Put + Sell 2 Lower Strike Puts
Greek Profile
Negative delta initially, positive gamma, positive theta
Characteristics
CreditBearishExpertUnlimited Risk
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Short strike - long strike + net credit
Max Loss
Unlimited below lower breakeven
Breakeven
Upper: Long strike - net credit; Lower: Variable