PUT BACKSPREAD	RATIO CALL SPREAD
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 Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by 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 since he is .. Read more..

PUT BACKSPREAD Vs RATIO CALL SPREAD - Details

	PUT BACKSPREAD	RATIO CALL SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile		Limited
Risk Profile		Unlimited
Breakeven Point		Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	PUT BACKSPREAD	RATIO CALL SPREAD
Market View	Bearish	Neutral
When to use?		This strategy is used by 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 since he is selling two calls.
Action		Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point		Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

PUT BACKSPREAD Vs RATIO CALL SPREAD - Risk & Reward

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

PUT BACKSPREAD Vs RATIO CALL SPREAD - Strategy Pros & Cons

	PUT BACKSPREAD	RATIO CALL SPREAD
Similar Strategies		Variable Ratio Write
Disadvantage		• Unlimited potential loss. • Complex strategy with limited profit.
Advantages		• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.