46.3 Lessons learnt

  • The ratio for the strategy should be 1:2 or 1:3.
  • The correct time frame for the Ratio put spread is 1-2 months. More extended periods can contain a lot of time risk.
  • Taking action when needed is one of the most essential elements. We believe you should do the following when there is a sharp price decrease: half of the combination at the level of the long put and the other half at the level halfway the long- and short put level.u00a0