How To Trade OPTION RATIO SPREADS (Full Tutorial) | LIVE OPTIONS TRADING

Ratio spreads are another great strategy for option sellers along with credit spreads, iron condors, strangles, covered calls, the wheel strategy, etc. So in this next episode of my live options trading series, I will explain how this strategy works, demonstrate a real life example on Amazon (AMZN), and take a deep dive into the ratio spread's risk profile to discuss its pros and cons!

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Chapters:
0:00 Introduction
1:55 Technical Analysis On SPY & AMZN
4:09 How The Put Ratio Spread Works
7:42 Analyzing The Profitability & Advantages Of Ratio Spreads
11:11 Analyzing The Risks Of Ratio Spreads
15:06 Get 10 FREE Stocks With Moomoo
16:11 Wrapping Up

#optionstradingcourse #optionselling #thinkorswim

[scottreesetradinginvesting]

Ratio spreads are a great strategy to add to your options trading arsenal! Let me know if you have any questions! :)

🔥 START YOUR FREE 7 DAY TRIAL WITH MY DISCORD HERE 🔥




🔥 GET UP TO 10 FREE STOCKS WITH MOOMOO 🔥
*** Use my link below to open a brokerage account and make an initial deposit to claim your rewards! ***

Open a Moomoo brokerage account = 1 free stock
Deposit $1 into your account = 5 extra free stocks (6 total)
Deposit $100 into your account = 1 more free stock (7 total)
Deposit $2, 000 into your account = 3 more free stocks (10 total)

[enricosaccheggiani]

Very interesting video Scott.
I use ratio spreads adding a long option to protect it from a massive lost. It's a butterfly. made with. calls. (bullish). with puts. (bearish).
I use it to hedge a vertical spread. that is in a loss

[nw]

This is a great strategy that I've overlooked. Thanks for sharing.

[treborv]

Great concise explanation on this strategy!

[atlantissmojo]

Do i need permission from think or swim to do back ratio spreads or strangles?

[alexpoon]

Hi Scott, for call ratio spread, can we own 100 shares first, then do a covered call ratio spread so that we don't have upside risk

[LMF-ctlt]

If the stock drops below the short strike price and you are assigned, would the trade lose money or just lose value? If the stock is high quality it will gain value back at some point.

[alexpoon]

Hi Scott, may I know what DTE normally you use to trade

[alexpoon]

Can we use weekly options to trade put ratio spread

[gordoncoon]

The first trade is a bullish strategy not a bearish strategy.
Short delta 41
Long delta 27 x 2 = 54

[wiryonobudiman]

Hi Scott, thank you for your wonderful video. How would you set stop loss on this ratio spread?
If we have stop loss in place, am I right to say that the downside risk is greatly minimized. Thank you.

[lousercena]

I feel like the ratio spread is like the butterfly strategy but without the other "wing". Great explanation to the ratio spread bro.

[donnowakowski]

Love your channel. Thanks for the education!