RATIO CALL WRITE	SHORT PUT
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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

RATIO CALL WRITE Vs SHORT PUT - Details

	RATIO CALL WRITE	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
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 - Premium

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

	RATIO CALL WRITE	SHORT PUT
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell 2 ATM Calls	Sell Put 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 - Premium

RATIO CALL WRITE Vs SHORT PUT - Risk & Reward

	RATIO CALL WRITE	SHORT PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Premium received in your account when you sell the Put Option.
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	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

RATIO CALL WRITE Vs SHORT PUT - Strategy Pros & Cons

	RATIO CALL WRITE	SHORT PUT
Similar Strategies	Variable Ratio Write	Bull Put Spread, Short Starddle
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages		• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.