Compare Strategies
RATIO CALL WRITE | RATIO CALL WRITE | |
---|---|---|
![]() |
![]() |
|
About Strategy |
Ratio Call Write Option StrategyThis 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. |
Ratio Call Write Option StrategyThis 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. .. |
RATIO CALL WRITE Vs RATIO CALL WRITE - Details
RATIO CALL WRITE | RATIO CALL WRITE | |
---|---|---|
Market View | Neutral | Neutral |
Type (CE/PE) | CE (Call Option) | CE (Call Option) |
Number Of Positions | 2 | 2 |
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 | Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit |
RATIO CALL WRITE Vs RATIO CALL WRITE - When & How to use ?
RATIO CALL WRITE | RATIO CALL WRITE | |
---|---|---|
Market View | Neutral | 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. | This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. |
Action | Sell 2 ATM Calls | Sell 2 ATM Calls |
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 | Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit |
RATIO CALL WRITE Vs RATIO CALL WRITE - Risk & Reward
RATIO CALL WRITE | RATIO CALL WRITE | |
---|---|---|
Maximum Profit Scenario | Net Premium Received - Commissions Paid | Net Premium Received - Commissions Paid |
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 | Price of Underlying - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid |
Risk | Unlimited | Unlimited |
Reward | Limited | Limited |
RATIO CALL WRITE Vs RATIO CALL WRITE - Strategy Pros & Cons
RATIO CALL WRITE | RATIO CALL WRITE | |
---|---|---|
Similar Strategies | Variable Ratio Write | Variable Ratio Write |
Disadvantage | • Potential loss is higher than gain. • Limited profit. | • Potential loss is higher than gain. • Limited profit. |
Advantages |