Short wrangle
-----Original Message-----
From: OptionClub@yahoogro
Behalf Of asdfffg1
Sent: Friday, August 28, 2009 6:53 PM
To: OptionClub@yahoogro
Subject: [TheOptionClub.
If XYZ is at 50, and a call ratio spread and put ratio spread are
created using the same month expiring option contracts, what is this
combination called? Is there even a name for it when ratio spreads are
combined, or is it simply two basic trades? An example is below. Thanks Guys
XYZ at 50
Trader buys one Dec 2009 ATM 50 call and sells two Dec 2009 55 calls. The
trader then buys one Dec 2009 ATM 50 put, and sells two Dec 2009 45 puts.
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