Options Strategy 2-Ratio Spread
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Options Strategy 2-Ratio Spread

Updated: May 22, 2021

Hello friends. Just imagine if you got an option strategy which if you win gives you unlimited profit or if you lose you don't lose anything. If you get this kind of strategy what you will like to call that strategy, I call that strategy Jon a short form of jockey or nothing. So, friends in today's article, I am going to tell you that uh you can say bumper strategy the name of that is Jon. So, let's understand how we are going to use the strategy, Jon.

In the last article, last time we have discussed a strategy which is called bull call spread and I hope you have followed that strategy. If you have not read the strategy, go to that article and we have done a live demonstration also and in that, we got approximately 30 profit in one week that was a bumper uh you can say profit which is not possible all the time but bull call spread is very good in the current situation where the market is continuously moving up and up. So, I brought here in this article another bumper strategy.


I was supposed to tell you about the bear call spread but I dropped the bear now because this is a bull period and bull period, we are going to discuss something about bull-related strategy. So, today again I’m going to talk about one of my most important famous successful strategies which I called Jon and it is a short form of jockey or nothing. Now this name was given by me because I generally modify the strategy which is standard available in the market. So, always it's not that strategy which you read about it but yes, I am going to give you the name of the strategy or call it the technical name of the strategy.


Because as you know there is a scientific name for every animal and plant on the earth. Same way in options strategy there is something called a technical name. So, what generally I do, I pick up a strategy I work on that I modify a little bit here and there, and then I make it slightly safer, slightly more uh towards success, less return but safer and then I change the name also. Why I do that is because this is my baby, I have done the grooming and I have the right to name that baby so the name of this baby is Jon and it is a short form of jockey or nothing and why you call it jockey or nothing it's a very interesting story. So, the first interesting story about it is and will spread . Basically you sell one call and you buy one call right and sometimes what happens is the market doesn't go upmarket just retreat and you lose your premium and you lose the net premium also.

So, I was looking for a strategy that gives me a bumper profit but if I’m wrong. It should not give me a lot of losses. So, generally, if I am bullish about a stock or a supposed nifty or bank nifty, then that time I use this strategy but always as it is a variation of the bull call spread. I will explain to you how it is a variation of vocal spirit. What happened generally that here I sell more calls to recover the course so always I was looking for a strategy which if I am right, give me a lot of money, if I’m slightly wrong still it gives me a lot of money, not a lot of money slightly better money but if I’m completely wrong still it can give me some kind of safeguards at least I can run for a cover. I can avoid big losses so always this is my philosophy in the future and options that I should get the return but I should never get a big loss. I always try to avoid a big loss. This is my first important priority and that's why I’m successful.


As per my definition I’m successful till the time I’m not making big losses even though I'm making 50 rupees 5 rupees of profit I’m successful in the stock market. Always remember this rule in the stock market. The first rule is not to make losses and the second rule is not to forget the first rule. Let me show you what I’m going to discuss and how this strategy is different uh how much capital is required and all these things about the strategy and don't uh skip the middle part because that is more going to be very important. I have seen people just keep skipping. If you skip the strategy will skip you and if the strategy will skip you trust me without understanding, don't dare to enter into this strategy because this strategy requires an expert level of understanding and in last, I’m going to share with you some of my modifications, some of my changes which made this standard strategy more powerful strategy.


What is the skill level you should require to medium to expert level? You should require to place the strategy I always put this because just if you are entering the stock market, this strategy is not for you if you are just starting your journey to the future and options, trust me this is not for you. Yes, you can learn you can always do your virtual trading platform or paper trading platform and I highly recommend everybody who is just venturing in future and options not to directly go and burn your hand or head or whatever you have and first, you go and try this. Just try and try so it is not the first time you have to just go and if you want to start if you want to learn a strategy which you can try as a beginner, then that's the best strategy is a super safe iron condor. I hope you enjoyed the article.

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