RATIO PUT WRITE	BEAR PUT 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 Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

RATIO PUT WRITE Vs BEAR PUT SPREAD - Details

	RATIO PUT WRITE	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
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 Long Put - Net Premium

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

	RATIO PUT WRITE	BEAR PUT 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	The bear call spread options 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 ITM Put Option, Sell OTM 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	Strike Price of Long Put - Net Premium

RATIO PUT WRITE Vs BEAR PUT SPREAD - Risk & Reward

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

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

	RATIO PUT WRITE	BEAR PUT SPREAD
Similar Strategies	Short Strangle and Short Straddle	Bear Call Spread, Bull Call Spread
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Limited profit. • Early assignment risk.
Advantages		• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.