Put Ratio Backspread Calculator

Search a symbol to visualize the potential profit and loss for a put ratio backspread option strategy.

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What is a put ratio backspread?

BearishHigh VolatilityLimited ProfitLimited Loss

The opposite of a call ratio backspread. This is an extremely bearish strategy that gives great profits when the stock makes a big downwords move, and a loss if it only moves a bit. If established for a net credit and the stock goes up, you can actually still make a small amount.

Time is generally harmful to this strategy, and increasing volatility is helpful.

ABProfitLossStock Price (at expiration)
  • Buy two puts at strike B
  • Sell a put at strike A