Hi All,
Just wanted to track how ratio spread works in options. I'm considering 2:3 ratio.
Strategy:-
Buy 2 lots ATM call/put and sell 3 lots OTM call/put.
This is basically trading the delta.
Example:-
Buy 2 lots 6300CE @ 103 (delta 0.39*2 = 0.78)
Sell 3 lots 6500CE @ 39...