The ALMIGHTY Put Ratio Spread Strategy

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The Put Ratio Spread is one of the most versatile option strategies available because you can make money regardless if the market goes up or down.

If you're more bullish, you can tweak it so that you make more as the market goes up.

And if you're more bearish, you can tweak it so that you make more as the market goes down.

In this video, I'm going to show you everything you need to know about the Put Ratio Spread to master it and make it a bread and butter option strategy for you.

Timestamps:
00:00 - Start
00:50 - What is the Put Ratio Spread?
05:00 - Why use the Put Ratio Spread?
09:17 - Put Ratio Spread Construction
23:37 - Trade Management & Game Plan

If you liked this video, please give a thumbs up, and also feel free to leave a comment if you have any questions, or just want to say hello.

#optionstradingforbeginners #cashsecuredput #stockinvestingforbeginners

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[optionswithdavis]

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[Aussiejosh]

This also works well when your stock has dropped a lot and placing covered calls does not generate meaningful premium. I also like setting these up after I have a short put / call and market moves away. I can place the spread closer to ATM for no cost if I suspect it will reverse for massive potential returns.

[bob_Human]

You explain these trades very clearly and easily, well done, bro.

[zerototalenergy]

the best I have seen so far you very much

[mauriceamaraggi]

Excellent video. I tried with MU. it went against me and I was surprised to have the higher sold put exercised before expiration. I was monitoring the lowest one. So I guess one should roll the highest sold put in order to avoid being assigned in advance. I don't worry, I am now selling calls and I am sure that the stock will climb again in the coming months.

[KT-zxjr]

Good clip Davis. Nice use of the chart to use suppport with your strike selection. Thanks.

[Oct-jydz]

Bullish expectation, narrowing Debit. Bearish expectation, widening Debit. I like that concept. Thanks!

[johnnguyen]

Another great video, thanks for sharing

[CR-fyuw]

Great production. Thanks much appreciated.

[philelmo]

Just wanted to say thanks for sharing this strategy in such detail and easy to understand. Thank goodness I put on these kinds of trades after learning about it from you. Previously was doing CSP only and with the big drop recently, I would be in shambles now. .80/.90 delta mean nothing when the Mr. Market wants to come after me, all ITM now. I won’t trust deltas ever again.

Not sure if you already did a video, but can you go into detail how to exit PRS in various scenarios. Like if your short gets early assigned, or how long to wait before you look at closing, what to look for when closing, do you keep waiting if the stock goes past your shorts very early on. Can you also discuss BP requirement vs traditional CSP? Like if you normally sell 5CSP on a stock, how many more can you do with a PRS? Maybe 7? Thanks in advance

[mingseng]

Thanks Davis! the strategy is awesome. I plan to use it on stocks that I am willing to own 😀

[jasonc]

Great video! On scenario #4, will the broker credit your account for $362 and then long $102.50 or will the profit net out of the $102.50 leaving a cost basis of $98.88?

[hengmunlam]

I realised you have a typo on scenario #3, , it should read "google is between $110 and Otherwise very good video and analytical! Thanks and keep up the good work!

[johnnguyen]

Davis, Using Put Ratio Spread strategy when you think market go up, am I correctly understand.
thanks

[fredachow]

Hi Davie, Always much appreciate your sharing, great video again! I love this Put Ratio Spread strategy, as I am going to acquire more stocks. But not sure how to close the trade, should we close all lags at the same time? or close them one leg by one leg? Do you have a video for How/When to close the short put spread?

[aravindtiwari]

Let's go!! 🔥🔥
Absolutely amazing content!! 💯

Keep up the good work. 🇮🇳♥️

[lovepunk]

Hi Davis, how would you recommend position sizing for PRS per trade (similar to credit spreads which is around 3-5% max loss or buying power?) Just wondering what is a good amount to trade in relation to account size.. thank you (:

[fatty-qp]

Do you couple this with a call ratio spread as well?

[junnov]

Hi Davis, I have a PRS open at strikes below.

+1 long put $95
-1 short put $92
-1 short $88

$95 long put is currently ITM and hovering above $92 short put. How far should I hold into expiration, and does the broker net out the long put spread (if it crosses $92 short put) even if I open by custom spread? I'm on TOS platform btw.

[JerryLJackson]

Would help to show the setup on Options Strat, when I try to build this as you described it looks like a huge loss on Options Strat