corduroy
Active Member
That makes an interesting possible profit curve. Not the best strategy if we are range bound, but a good tool if you expect a big move.has anyone tried "put backspread"?
- for anyone with a BPS that is facing max loss; it can be given the chance to recover by converting it into a "put backspread"; essentially, a BPS with +p at least 2x the -p to help limit or prevent max loss on steep drops
- for anyone thinking of a potential drop post-P&D
- for anyone thinking the uptick rule will be triggered again
Put Backspread Explained | Online Option Trading Guide
What is Put Backspread? See detailed explanations and examples on how and when to use the Put Backspread options trading strategy.www.theoptionsguide.com
"It is an unlimited 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."
Put Backspread | Back Spread Options - The Options Playbook
A put ratio backspread is a very bullish seasoned option strategy involving the sell and buying of puts, at different strike prices, that expire in the same month.www.optionsplaybook.com
"This is a trade you might want to consider just prior to a major news event if you expect the outcome to be negative."
Put Backspread Guide [Setup, Entry, Adjustments, Exit]
Put backspreads are bearish strategies that require a significant move down in the underlying stock. Learn more with our put backspread strategy guide.optionalpha.com
"A put backspread is a multi-leg, risk-defined, bearish strategy with unlimited profit potential. The strategy looks to take advantage of a significant move down in the underlying stock."
Here is an example of a -740/+2 680. With my luck, this would land smack dab on that $680