Option Trading: Risk Reversals, Backspreads, and Ratio Strategies

We begin with a look at the risk reversal option strategy, and look at two different positions available to an investor. We then discuss ratio call and ratio put spread strategies, where there are an unequal number of options transacted at the various strike prices in the strategy. We go on to describe a variant on ratio strategies, backspreads, and finish up with a short video on participating strategies.