FINRA Series 4 - Registered Options Principal Exam

What is a 'backspread' in options trading?

Selling fewer options than you buy, seeking to profit from a large move Buying fewer options than you sell to maximize premium income A strategy where you reverse a prior spread position Selling back-month options and buying front-month options

Correct Answer:

Selling fewer options than you buy, seeking to profit from a large move

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