 This module is on advanced trading strategies using options and futures. We are going to look at two interesting spreads They are called the back spreads and the ratio spreads. We are talking about the back spread. The back spread is a very interesting Trade it's a it's a great strategy broadly speaking it's when you involve an unbalanced amount of long and short options if we look at the back spread first the back spread is a Volatility strategy, so you're expecting or you're you're wanting a move in either direction So it could be non directional which means you know the stock or the index can go either way it can go up or down and You can structure it in such a manner that you can come out ahead Whether the stock goes up or down and that's the great thing about the back spread It's a volatility strategy You need movement and if you do get that movement you can structure it such a way that You'll have an unlimited profit profile on one side and then on the other side Even though you may not have unlimited profit. You can at least secure a certain profit So we'll see all of this when we go into the platform in part 2 and I'll be showing you exactly what a back spread is What a ratio spread is The back spread involves more long options than short option and therefore that's why it's a volatility trade because you have more long options and Therefore on one side you have the potential for unlimited profits