RATIO CALL WRITE	LONG CALL
About Strategy	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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

RATIO CALL WRITE Vs LONG CALL - Details

	RATIO CALL WRITE	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
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	Strike Price + Premium

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

	RATIO CALL WRITE	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
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.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Sell 2 ATM Calls	Buying Call option
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	Strike price + Premium

RATIO CALL WRITE Vs LONG CALL - Risk & Reward

	RATIO CALL WRITE	LONG CALL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Underlying Asset close above from the strike price on expiry.
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	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO CALL WRITE Vs LONG CALL - Strategy Pros & Cons

	RATIO CALL WRITE	LONG CALL
Similar Strategies	Variable Ratio Write	Protective Put
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages		• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.