RATIO PUT WRITE	LONG CALL BUTTERFLY
About Strategy	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in 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..	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

RATIO PUT WRITE Vs LONG CALL BUTTERFLY - Details

	RATIO PUT WRITE	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts	Limited
Risk Profile	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	RATIO PUT WRITE	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
When to use?	This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future	This strategy should be used when you're expecting no volatility in the price of the underlying.
Action	Sell 2 ATM Puts	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

RATIO PUT WRITE Vs LONG CALL BUTTERFLY - Risk & Reward

	RATIO PUT WRITE	LONG CALL BUTTERFLY
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid	Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

RATIO PUT WRITE Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	RATIO PUT WRITE	LONG CALL BUTTERFLY
Similar Strategies	Short Strangle and Short Straddle	-
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages		• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.