/biz/ - Business & Finance

K so after a really shitty day I had a revelation - an options strategy so goddamn autistic it just might actually work. I want to introduce to you guys the Poverty Calendar Ratio Spread:

Buy a leap debit spread atm/itm and then write relatively short term otm credit spreads against the debit, but writing more credit spreads than however many debits you bought. It's basically a poor man's covered call + ratio spread, except done with spreads instead of naked long calls and short calls, hence the name poverty calendar ratio spread. I'm talkin like, if you did this on spy, it's $4 to open a 2:1 trade with super low max cost ($30-40ish?) and extremely high profit potential near $100, which for locking up only $200 collateral is pretty gud.

tl;dr long term bull debit spreads + short term bear credit spreads.