PROTECTIVE CALL	RATIO PUT SPREAD
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The Read more..	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. 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..

PROTECTIVE CALL Vs RATIO PUT SPREAD - Details

	PROTECTIVE CALL	RATIO PUT SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Sale Price of Underlying + Premium Paid	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

PROTECTIVE CALL Vs RATIO PUT SPREAD - When & How to use ?

	PROTECTIVE CALL	RATIO PUT SPREAD
Market View	Bearish	Neutral
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Buy 1 ATM Call	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Sale Price of Underlying + Premium Paid	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

PROTECTIVE CALL Vs RATIO PUT SPREAD - Risk & Reward

	PROTECTIVE CALL	RATIO PUT SPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs RATIO PUT SPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	RATIO PUT SPREAD
Similar Strategies	Put Backspread, Long Put	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Unlimited potential risk. • Limited profit.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.