What is the profit potential of a Put Ratio Back Spread when the market goes down?

Limited Unlimited Fixed Depends on the strike price

What is the typical ratio of options bought to options sold in a Put Ratio Back Spread?

1:1 2:1 1:2 3:1

What kind of cash flow is usually expected when executing a Put Ratio Back Spread?

Net debit Net credit Zero cash flow Variable cash flow

What happens to the Put Ratio Back Spread payoff at any point above the ITM strike price?

Equals the net credit Equals the maximum loss Becomes zero Becomes highly volatile

What is the point of maximum pain in a Put Ratio Back Spread?

When the market expires at the higher strike price When the market expires at the lower strike price When the market stays within a range When the market experiences high volatility

How many breakeven points does a Put Ratio Back Spread have?

One Two Three None

What is the impact of increased volatility on a Put Ratio Back Spread with ample time to expiry?

Beneficial Detrimental Negligible Unpredictable

What is the primary factor to consider when deploying a Put Ratio Back Spread close to expiry?

Volatility Time decay Directional movement Strike price difference

What type of option strategy is a Put Ratio Back Spread?

Bullish Bearish Neutral Volatility

What is the recommended strike selection for a Put Ratio Back Spread?

Two ITM options Two OTM options One ITM and one OTM option Any combination will work