The Ratio Put Spread That Has Boomed For Mega tech and SPY

[markuzick]

What about using a mental stop loss to prevent big drawdowns: would the strategy still work alright, or must must it be held to expiration?

 

[destriero]

Only one is a back spread; the other is a ratio spread.

He needs an editor.

 

[TheBigShort]

Here is the trade CML dude is referring to. This is the

Long delta 40, short 2x delta 30, short 1 delta 22, long 2x delta 15.
I do not see anything special about this.
If not delta hedged this is a directional trade, with a brutal risk reward. Even if you wanted to consider this as a short vol/skew trade, your gamma/vega ratio is a little high.....
Trade the underlying if you want delta.

 

[harryp]

I do not see anything special about this.
If not delta hedged this is a directional trade,

Basically a commentary on 2010-2019 market.