RATIO PUT WRITE	COVERED PUT
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..	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

RATIO PUT WRITE Vs COVERED PUT - Details

	RATIO PUT WRITE	COVERED PUT
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option) + Underlying
Number Of Positions	2	2
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	Unlimited
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	Futures Price + Premium Received

RATIO PUT WRITE Vs COVERED PUT - When & How to use ?

	RATIO PUT WRITE	COVERED PUT
Market View	Neutral	Bearish
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	The Covered Put works well when the market is moderately Bearish.
Action	Sell 2 ATM Puts	Sell Underlying Sell OTM Put 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	Futures Price + Premium Received

RATIO PUT WRITE Vs COVERED PUT - Risk & Reward

	RATIO PUT WRITE	COVERED PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	The profit happens when the price of the underlying moves above strike price of Short Put.
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	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

RATIO PUT WRITE Vs COVERED PUT - Strategy Pros & Cons

	RATIO PUT WRITE	COVERED PUT
Similar Strategies	Short Strangle and Short Straddle	Bear Put Spread, Bear Call Spread
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages		• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.