In this article

the author says:

    Since June 24, crude prices halved while CVX has dropped only 20%. 
   SPY has risen slightly less than 3% during that time period.
   What’s a good options strategy in light of all of this information? 

    A 1X2 **over-the-counter** call ratio spread

Why does this trade need to be an over the counter trade? It is a standard call option trade with standard contract size of 100 shares. So why is it over the counter as opposed to being traded on an exchange?

  • 1
    From the looks of the article, I wouldn't be surprised if they didn't include the term just because it sounded 'cool'. – Knuckle-Dragger Mar 17 '15 at 1:53
  • Thanks. I guess you don't think the article is any good?:) – Victor123 Mar 17 '15 at 14:14
  • I wouldn't say that, maybe take it with a grain of salt. He definitely points out some ideas, but I'm not entirely sure whether this writer is an actual trader or just a guy who gets paid to write articles about trading. (in which case he has to 'make them interesting') – Knuckle-Dragger Mar 17 '15 at 16:22
  • SPY and CVX both offer exchange traded options so this trade would not be done on the OTC. – Bob Baerker Sep 21 '18 at 23:54

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