RATIO PUT WRITE	BULL CALL SPREAD
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..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

RATIO PUT WRITE Vs BULL CALL SPREAD - Details

	RATIO PUT WRITE	BULL CALL SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
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	Strike price of purchased call + net premium paid

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

	RATIO PUT WRITE	BULL CALL SPREAD
Market View	Neutral	Bullish
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 is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Sell 2 ATM Puts	Buy ITM Call Option, Sell OTM Call Option
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	Strike price of purchased call + net premium paid

RATIO PUT WRITE Vs BULL CALL SPREAD - Risk & Reward

	RATIO PUT WRITE	BULL CALL SPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
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 BULL CALL SPREAD - Strategy Pros & Cons

	RATIO PUT WRITE	BULL CALL SPREAD
Similar Strategies	Short Strangle and Short Straddle	Collar
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
Advantages		• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.