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Portfolio Analysis: 7/6/20 - Why Put Ratio Spreads Lose Money When Stocks Fall

From Theory To Practice

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In today’s portfolio analysis, we begin by managing our winning Short Put in SLV. This was a trade that we placed as a great example of how traders with smaller accounts can gain experience with undefined-risk positions in lower-priced stocks. Then, we analyze our Ratio Spread in XLU and explain why on a down day, the position is showing a loss.

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