Put Ratio Spread (1×2)
The same to the downside: you expect price to drift down to a level and stall. You're paid, with max profit at that level; a sharp crash below carries large risk.
How the Put Ratio Spread works
The extra sold put funds the position (often a credit) but leaves you net short 1 put — below the lower strike the loss grows. It is ideal if price reaches exactly the lower strike.
Placing strikes at GEX levels
Set the lower (2× sold) strike at the Put Wall — the likely support where a drop stalls. The ideal regime is positive GEX. Mind the crash risk.
The Put Wall is computed live in the GEX Terminal — Position Builder.
When to open, the Greeks and managing the position
It suits low-volatility markets drifting gently up over strong support. Peak profit at the lower strike = (strike gap + credit). Lower breakeven = lower strike − (strike gap) − credit; large risk on a crash below the lower strike (one naked put).
Greeks: positive theta makes every sideways day profitable. Management: as price falls toward the lower strike, defend the uncovered leg by rolling down, buying a deep-OTM put, or shorting a future to delta-hedge.
FAQ
If price is at the lower (sold) strike at expiry.
You are net short a put — below the lower strike the loss grows on a strong drop.
Build the Put Ratio Spread on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.