• Trader Talk | Education | Nov 20, 2017, 10:42 AM

    Pricing Ratio Spreads - Comparing Expirations and Strikes with SPX and CMG

    Pricing Ratio Spreads - Comparing Expirations and Strikes with SPX and CMG

    Wednesday I conducted a webinar for Interactive Brokers discussing ratio spreads.  During the presentation I was asked about initiating 1 x 2 and what expirations and strike combinations would result in a credit.  Another stipulation was that the trade would buy one at-the-money option and sell two out-of-the-money options.  I wasn’t asked for a call or put spread, so I did both with each expiration.  With so many moving parts to that question I responded that I would investigate[...]

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