Ratio Spread Strategy: Why Pros Use 2 to 3 Instead of 1 to 2
In this video, I break down the 2 to 3 Ratio Spread strategy, the systematic upgrade to the classic 1 to 2 that leaves most traders with unmanageable risk. While most traders sell a 1 to 2 and hope price pins perfectly, the 2 to 3 creates a wider profit tent, a smoother delta profile, and a clear path to manage the trade when price moves against you. You will see the exact profit and loss shape for both the put ratio spread and call ratio spread, where breakeven sits, why implied volatility can make or break the entry, and how a simple butterfly roll lets you transform a threatened ratio spread into a defined risk position without guessing. No gambling. No predictions. Just probabilities and process. βΈ» About Option Samurai Option Samurai helps you find better trades faster. Our powerful scanner and tools are built for serious options traders who want clarity, speed, and an edge. The ratio spread scans shown in this video are live inside the platform, with filters for put ratio and call ratio setups, plus profit and loss visualization so you can see risk before you commit capital. βΈ» π Try it free: https://optionsamurai.com π Put Ratio Spread guide: https://optionsamurai.com/blog/put-ratio-spread/ π Call Ratio Spread guide: https://optionsamurai.com/blog/call-ratio-spread/ π Feature guide: https://samurai.froged.help/docs/en/43597154-research βΈ» π Like this video if it helped you π Subscribe for more options trading strategies and tools π¬ Drop a comment if you have questions or ideas for future videos βΈ» Chapters 0:00 Why Most Ratio Spreads Fail With 1 to 2 0:42 What Is a Ratio Spread 1:28 Put Ratio Spread vs Call Ratio Spread Explained 2:25 Why the 2 to 3 Ratio Changes the Math 3:18 The Butterfly Roll How to Manage a Threatened Spread 4:27 How Implied Volatility Impacts the Trade 5:14 Scanning for 2 to 3 Ratio Spreads in Option Samurai 6:02 Key Takeaways and Next Steps
