PUT BACKSPREAD	RATIO PUT 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 Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. 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..

PUT BACKSPREAD Vs RATIO PUT SPREAD - Details

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

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

	PUT BACKSPREAD	RATIO PUT SPREAD
Market View	Bearish	Neutral
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.
Action		Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point		Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

PUT BACKSPREAD Vs RATIO PUT SPREAD - Risk & Reward

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

PUT BACKSPREAD Vs RATIO PUT SPREAD - Strategy Pros & Cons

	PUT BACKSPREAD	RATIO PUT SPREAD
Similar Strategies		Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage		• Unlimited potential risk. • Limited profit.
Advantages		• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.