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How Ratio Spread could be used positively? – By Shubam Agarwal

Let’s see what Shubham Agarwal has to say about ratio spreads:

Many options in life are a great opportunity if people use them well in life and know about the pros and cons of the same.

Ratio spreads is one such thing.

It is one spread which is used correctly can beat anyone and if not then you are finished.

Years by years there are more number of options for selling and the only thing people should know is when to quit from there.

Ratio spreads also include selling options, but yet again with a twist.

Ratio spreads are created as it would include buying a call option and which is closest to the market price and then selling two lots of at least two steps

The biggest threat here is additional selling. it would take a couple of sessions to reach into the profit zone.

If at any chance there is a loss then the loss will be only of net premium paid.

The main thing is your exit strategy when you feel things are going ugly and you are not gaining profits then the only option is quitting.

There is a risk factor in each and everything in life but what makes you stand out is how beautifully you play your cards.

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