Hello Investors,
Today we had a deep discussion on the Put Ratio Backspread strategy. We analyzed the risk/reward/probability. We looked at the net delta, gamma, vega and theta. This was a very advanced discussion but a good one for learning to trade. In addition, we entered into a put ratio backspread in GLD as shown below.
Sold to open: GLD Nov 20th (monthly) 182.00 strike puts (ratio of 1)
Buy to open: GLD Nov 20th (monthly) 176.00 strike puts (ratio of 2)
Net debit: 0.24
Max risk = 6.24 or $624.00
Max reward = Unlimited on the downside
Have a great week!