What is this called???

Quote from asdfghj7:

XYZ is currently at 15
We buy one 3 month 15 put for 3pt and
sell two 12.5 puts for 1.5 each

Stock price not relevant
Option premium not relevant

This spread has different names

It's a put front spread

It's a ratioed put vertical spread

It's a butterfly, missing one leg


But I'd go with 'front spread'

Mark
 
It's a ratio spread. I learned that right here from reading other posts :)

"I've been recently been developing a strategy generally focused around the idea of a RATIO SPREAD trade where an ITM/ATM/or OTM call or put is purchased by the buyer, who finances it with 2 further OTM options in the same month or buying one option and financing it with a higher strike further out month option."
 
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