Options In Focus: Quoting an Odd Ratio Spread
Posted on March 15, 2010 at 13:28 PM EDT
The price of an option, much like a stock, is subject to what the market will bear. Most traders will tell you, grudgingly of course, the market is also always right, until its not. When traders get into ratio-option spreads however, that price may seem altogether wrong, if one is unfamiliar with how they’re expressed as a price package in the open market. In the following let’s illustrate this point by looking at couple ratioed calendar