RATIO PUT WRITE	LONG STRADDLE
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..	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

RATIO PUT WRITE Vs LONG STRADDLE - Details

	RATIO PUT WRITE	LONG STRADDLE
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
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 Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

RATIO PUT WRITE Vs LONG STRADDLE - When & How to use ?

	RATIO PUT WRITE	LONG STRADDLE
Market View	Neutral	Neutral
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 options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 2 ATM Puts	Buy Call Option, Buy Put 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	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

RATIO PUT WRITE Vs LONG STRADDLE - Risk & Reward

	RATIO PUT WRITE	LONG STRADDLE
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Max profit is achieved when at one option is exercised.
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 = Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO PUT WRITE Vs LONG STRADDLE - Strategy Pros & Cons

	RATIO PUT WRITE	LONG STRADDLE
Similar Strategies	Short Strangle and Short Straddle	Bear Put Spread
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages		• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.