RATIO CALL WRITE	BULL CALL SPREAD
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..	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 CALL WRITE Vs BULL CALL SPREAD - Details

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

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

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

RATIO CALL WRITE Vs BULL CALL SPREAD - Risk & Reward

	RATIO CALL 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 - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid	Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

RATIO CALL WRITE Vs BULL CALL SPREAD - Strategy Pros & Cons

	RATIO CALL WRITE	BULL CALL SPREAD
Similar Strategies	Variable Ratio Write	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.