ETH Option Strategy for Sideways or Downward
MovementStrategy Name:
Put Ratio Spread
As shown above, construct a 2-leg option strategy:
Buy: 1 Put option with a $3,500 strike, expiring August 15.
Sell: 2 Put options with a $3,300 strike, expiring August 15.Initial Premium: Collect $20.
Maximum Profit: $220.
🔴 Suitable For
Traders aiming to profit from significant upward moves, sideways markets, or small declines. In a sharp downturn, the strategy can still yield profits similar to a bearish spread.
Risk Management:
Sharp Decline: Ensure sufficient margin to take delivery of ETH spot.
Large Rise or Sideways: Take profits when the sold leg reaches 50-70% of its potential.
For a detailed explanation of the Put Ratio Spread, watch the video: “Win Consistently with Just One Strategy: A Wealth Plan for Options Beginners!”