Financing a Log Put Spread: A Modified Ratio Spread

1 month ago
12

In this video, we look at financing the purchase of a long put vertical for a bearish market plat. This is done by selling a short put whose credit is big enough to pay for the long spread. This trade does have downside risk on account of the short put, but our beak-even point is significantly lower than our naked short strike. This trade has no risk to the upside. In fact, we make a small credit if the market rallies. Traded on 07/23/2025.

Tipjar: https://paypal.me/kpmooney

Loading 2 comments...