What are the risks when implementing the following ratio spread? XYZ stock is trading at $27.75 Buy
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What are the risks when implementing the following ratio spread?
XYZ stock is trading at $27.75 Buy 1 Sept. 25 call at $3.75 Sell 3 Sept. 30 calls at $1.25 each
a. Stock stays between $25.00 and $30.00.
b. Stock climbs over $35.00.
c. Stock drops to $25.00.
d. Implied volatility increases.
LO.1
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