A delta-neutral ratio spread, or a reverse option hedge, whereby the number of options bought exceeds that of the options sold. Therefore, volatility is the main determinant of profitability for such a spread. If volatility rises, spread profitability improves, and vice versa.

Other meanings:

• A complex investment position which includes at least one separate or embedded net long option position. This option position causes the value of the entire investment position to increase in response to a significant movement in price or rate, regardless of direction.
• A vertical or diagonal option spread in which the position holder receives net premium, usually because the short option is deeper in the money or less out of the money than the long position. It is also called credit spread.
• A mispricing situation where the spread between the two prices or rates is less than the normal spread. That produces an arbitrage opportunity.