Learn about investing, trading, retirement, banking, personal finance and more.
A ratio put spread uses multiple put contracts in a certain ratio that makes them start off delta-neutral.
Ratio put spreads are similar to regular spreads, but instead of using the same number of put contracts sold short as are held long, ratio spreads are set up with more of one than the other, in a ratio such as 2:1 or 3:2. The short contracts will have different strike prices than the long contracts.
The contracts which are further out of the money will be cheaper to buy, and it could be that there is no net credit or debit collected by the investor creating the spread position. It may already be priced in so that it works out this way, but the ideal way to set up a ratio spread is in a delta-neutral way.
Depending on which side you are long-- the near-the-money or the further-out contract-- you will have different outlooks for the potential profit and loss of your strategy.
A naked put is when a put option contract writer or short-seller does not have the resources on hand to cover the position
Contributions for employees must be made within 30 days after a pay-period, while employers match before the tax deadline
The “Efficient Frontier” is a modern portfolio theory tool, which demonstrates the best possible returns relative to risk
Keogh plans have minimum eligibility requirements that will probably include most of your employees, but not all of them
Regular pension payments are periodic distributions. This will be the default option on pension arrangements
Homeowners insurance covers a variety of risks to a homeowner, including damage to the property and the belongings...
Technical analysis is a method of evaluating the worth and probable future direction of security prices using charts...
Form 706 is the Estate Tax return, and it has a section concerning Generation-Skipping Transfers. 706 GS (d) specifically
Publication 17 is a very large and detailed guide to help individuals correctly file their federal income tax returns
The Falling Wedge pattern forms when a currency pair price appears to be spiraling downward with two down-sloping lines