RATIO PUT WRITE	CALL BACKSPREAD
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..	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 PUT WRITE Vs CALL BACKSPREAD - Details

	RATIO PUT WRITE	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts	Unlimited
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	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

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

RATIO PUT WRITE Vs CALL BACKSPREAD - Risk & Reward

	RATIO PUT 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 - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - 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 PUT WRITE Vs CALL BACKSPREAD - Strategy Pros & Cons

	RATIO PUT WRITE	CALL BACKSPREAD
Similar Strategies	Short Strangle and Short Straddle	-
Disadvantage	• Potential loss is higher than gain. • Limited profit.
Advantages		• Unlimited profit potential.