RATIO CALL WRITE	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

RATIO CALL WRITE Vs CALL BACKSPREAD - Details

	RATIO CALL WRITE	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	RATIO CALL WRITE	CALL BACKSPREAD
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 the investor expects the price of the stock to rise in the future.
Action	Sell 2 ATM Calls	Sell 1 ITM Call, BUY 2 OTM Call
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

RATIO CALL WRITE Vs CALL BACKSPREAD - Risk & Reward

	RATIO CALL WRITE	CALL BACKSPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Unlimited profit potential if the stock goes in upward direction.
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	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO CALL WRITE Vs CALL BACKSPREAD - Strategy Pros & Cons

	RATIO CALL WRITE	CALL BACKSPREAD
Similar Strategies	Variable Ratio Write	-
Disadvantage	• Potential loss is higher than gain. • Limited profit.
Advantages		• Unlimited profit potential.