RATIO PUT WRITE	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

RATIO PUT WRITE Vs SHORT CALL - Details

	RATIO PUT WRITE	SHORT CALL
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
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	Unlimited
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 + Premium Received

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

	RATIO PUT WRITE	SHORT CALL
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	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Sell 2 ATM Puts	Sell or Write 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 + Premium Received

RATIO PUT WRITE Vs SHORT CALL - Risk & Reward

	RATIO PUT WRITE	SHORT CALL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Max Profit = Premium Received
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	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Unlimited	Unlimited
Reward	Limited	Limited

RATIO PUT WRITE Vs SHORT CALL - Strategy Pros & Cons

	RATIO PUT WRITE	SHORT CALL
Similar Strategies	Short Strangle and Short Straddle	Covered Put, Covered Calls
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages		• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.