STRATEGY EXPLAINER · 2:57
Put Backspread Strategy Explainer Video
The Put Backspread (reverse Put Ratio Spread) is a bearish strategy in options trading that involves selling a number of put options and buying more put options of the same underlying stock and expiration date at a lower strike price. It is an limited profit, limited risk options trading strategy that is taken when the options trader thinks that the underlying stock will experience significant downside movement in the near term.
