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Chapter 7. Puts in the Ratio Spread: Alt... > Ratio Put Calendar Spreads
Ratio Put Calendar Spreads
The ratio put spread can be varied by time as well. The ratio calendar spread improves chances for short expiration while leaving longer-term long puts open. Because shorter-term short put time value will fall more rapidly than the longer-term long puts, the opportunity for a profitable outcome is favorable.
Key Point
The ratio calendar spread involves not only a different number of long and short positions, but also different expiration dates.
