Ratio Spread 111 Strategy

Explore the Ratio Spread 111, a highly defensive options trading strategy. This approach offers enhanced safety compared to a naked put, focusing on risk manage

Published · Updated · Methodology: Technical Indicators

Part of: Options Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Markets: Options

Source video

Decoded from: Ratio Spread 111 - Estrategia MÁS DEFENSIVA, más segura con el mismo riesgo del Naked Put 💎 by Tradeknowlogy - Julián Arcila — watch the original

Strategy overview

A ratio spread is an options position built from unequal numbers of contracts at different strikes, which means the "111" in this strategy's name is a count of legs rather than a setting on a chart. That distinction explains why this entry, filed under technical indicators, carries no timeframe and no indicator list: the variables that define it live in the options chain — strike selection, expiration, and the ratio between legs — not in any transformation applied to a price series. There is no moving average to tune here, and no signal line to cross.

The source, a Spanish-language video from Julián Arcila's Tradeknowlogy channel, does not present the structure in isolation. It presents it *against* something: the naked put, the benchmark most premium sellers start from. The title's framing — more defensive, in the author's words "más segura," at what he describes as the same risk — sets the unit of comparison as the shape of the payoff for a given amount of capital committed, not as a better read on direction. That is the characteristic argument of structured options positions generally: the legs are chosen to move the breakevens and redistribute where losses accumulate, while the underlying directional thesis stays the same as the simpler position it replaces.

No rule set was extracted for this entry, so this page does not reconstruct the specific strikes, expirations, or adjustment logic the video uses — and those choices are precisely what determine whether the defensive claim holds in a given market. Two further points are worth carrying into the source: a structure like this cannot be evaluated from a price chart alone the way an indicator rule can, since it depends on options pricing and implied volatility; and the margin treatment that makes the risk comparison meaningful is set by the broker, not by the strategy. The video itself remains the reference for how the author assembles and defends the position.

Topics

ratio spread 111 strategy · options trading strategy · technical indicators · trading strategy · tradingview strategy · risk management · naked put · defensive options strategy · options strategy

Frequently asked questions

What is a ratio spread in options trading?

A ratio spread is a position that combines options of the same type at different strikes in unequal quantities — for example, more contracts sold at one strike than bought at another. The imbalance is the point: it reshapes the payoff and the breakevens compared with a single-leg position.

What does the "111" in Ratio Spread 111 refer to?

The digits are contract counts describing how the legs of the structure are assembled, not indicator parameters. The notation names the shape of the position; the specific strikes and expiration choices are laid out by the source video.

Why does this strategy list no indicators or timeframe?

Because it is an options structure rather than a chart-based signal. Its inputs are strikes, expiration, and the ratio between legs, so the timeframe and indicator fields are legitimately empty — Strategy Decoder records the concept and its source rather than inventing settings that the strategy does not use.

How does a ratio spread differ from selling a naked put?

A naked put is a single short option with one strike and an undefined loss profile below it; a ratio spread adds legs, which changes both the payoff shape and the margin the broker requires. The source video argues the ratio version is the more defensive of the two at comparable risk — a claim that depends entirely on the strikes chosen, and one worth verifying against your own broker's margin rules before trading it.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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