Calendar Ratio Spread (Put): Buy Long Term Put (S=50, T=.5) And Sell More Than One Short Term Put (S=50)
Against It
Risk: Unlimited-downside
Profit Potential: Limited-at strike
Equivalent Positions: None
Follow-up Action: Close out position if stock breaks out to the downside
Diagonal Butterfly Spread: Buy Long Term Put At Lower Strike (S=45, T=.45), Sell Short Term Straddle At Middle
Strike (S=50), And Buy Long Term Call At Higher Strike (S=55, T=.5)
Risk: Limited-up and down
Profit Potential: Limited-at strike
Equivalent Positions: None
Follow-up Action: None
Ratio Calendar Combination: Buy A Long Term Combination (Put S=45, Call S=55, T=.5), And Sell More Than One
Short Term Combinations (Put S=45, Call S=55)
Risk: Unlimited-up and down
Profit Potential: Limited-between strikes
Equivalent Positions: None
Follow-up Action: Close out position if stock breaks out in either direction
