Credit Option Spreads

Long Call Ratio Spread

September 11, 2008 · Leave a Comment

A good description of what a Long Call Ratio Spread is and how to use it.
clipped from optionsstrategies.blogspot.com


Bull Spread – Long Call Ratio Spread

While this is a Bull Spread option strategy, it can be a market neutral to bullish bias and non directional option strategy.

When to use : Neutral to Bullish Trend
How to establish : LONG 1x Call and Short 2x Call
Debit or Credit : Credit (preferably)
Margin Requirement : Yes
What is the Maximum Profit : Limited to between the Long and Short strikes
What is the Maximum Loss : Unlimited
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