RATIO PUT WRITE	BEAR CALL SPREAD
About Strategy	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..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

RATIO PUT WRITE Vs BEAR CALL SPREAD - Details

	RATIO PUT WRITE	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts	Limited
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	Limited
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	Strike Price of Short Call + Net Premium Received

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

	RATIO PUT WRITE	BEAR CALL SPREAD
Market View	Neutral	Bearish
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	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 2 ATM Puts	Buy OTM Call Option, Sell ITM Call Option
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	Strike Price of Short Call + Net Premium Received

RATIO PUT WRITE Vs BEAR CALL SPREAD - Risk & Reward

	RATIO PUT WRITE	BEAR CALL SPREAD
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Max Profit = 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	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

RATIO PUT WRITE Vs BEAR CALL SPREAD - Strategy Pros & Cons

	RATIO PUT WRITE	BEAR CALL SPREAD
Similar Strategies	Short Strangle and Short Straddle	Bear Put Spread, Bull Call Spread
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages		• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.