PUT BACKSPREAD	RATIO CALL WRITE
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..	Ratio Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. Read more..

PUT BACKSPREAD Vs RATIO CALL WRITE - Details

	PUT BACKSPREAD	RATIO CALL WRITE
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile		Limited
Risk Profile		Unlimited
Breakeven Point		Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

PUT BACKSPREAD Vs RATIO CALL WRITE - When & How to use ?

	PUT BACKSPREAD	RATIO CALL WRITE
Market View	Bearish	Neutral
When to use?		This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action		Sell 2 ATM Calls
Breakeven Point		Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

PUT BACKSPREAD Vs RATIO CALL WRITE - Risk & Reward

	PUT BACKSPREAD	RATIO CALL WRITE
Maximum Profit Scenario		Net Premium Received - Commissions Paid
Maximum Loss Scenario		Price of Underlying - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs RATIO CALL WRITE - Strategy Pros & Cons

	PUT BACKSPREAD	RATIO CALL WRITE
Similar Strategies		Variable Ratio Write
Disadvantage		• Potential loss is higher than gain. • Limited profit.
Advantages