PUT BACKSPREAD	RATIO PUT WRITE
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 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..

PUT BACKSPREAD Vs RATIO PUT WRITE - Details

	PUT BACKSPREAD	RATIO PUT WRITE
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile		Max Profit Achieved When Price of Underlying = Strike Price of Short Puts
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
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

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

	PUT BACKSPREAD	RATIO PUT WRITE
Market View	Bearish	Neutral
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
Action		Sell 2 ATM Puts
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

PUT BACKSPREAD Vs RATIO PUT WRITE - Risk & Reward

	PUT BACKSPREAD	RATIO PUT WRITE
Maximum Profit Scenario		Net Premium Received - Commissions 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
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PUT BACKSPREAD Vs RATIO PUT WRITE - Strategy Pros & Cons

	PUT BACKSPREAD	RATIO PUT WRITE
Similar Strategies		Short Strangle and Short Straddle
Disadvantage		• Potential loss is higher than gain. • Limited profit.
Advantages