The Ratio Call Spread (AKA Call Front – Ratio spread) is a slightly Bullish to market neutral strategy that eliminates all downside risk. If a trader believes that a stock (or ETF), in their portfolio, is going to trade sideways to higher from its current location but wants to be able to hedge some of the risks in the event that stock (or ETF) sells off, it may be a great time to implement a Ratio Call Spread.

Join Eric “The Wolfman” Wilkinson, former Chicago Board of Trade floor trader and 25-year professional trader, as he explains how traders can profit from multiple movements in an underlying and how they can take advantage of High Implied Volatility. He will show when it is appropriate and how to correctly implement a Ratio Call Spread with any stock or ETF.