LONG CALL BUTTERFLY	RATIO PUT SPREAD
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho Read more..	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. 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. Read more..

LONG CALL BUTTERFLY Vs RATIO PUT SPREAD - Details

	LONG CALL BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

LONG CALL BUTTERFLY Vs RATIO PUT SPREAD - When & How to use ?

	LONG CALL BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	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 Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

LONG CALL BUTTERFLY Vs RATIO PUT SPREAD - Risk & Reward

	LONG CALL BUTTERFLY	RATIO PUT SPREAD
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

LONG CALL BUTTERFLY Vs RATIO PUT SPREAD - Strategy Pros & Cons

	LONG CALL BUTTERFLY	RATIO PUT SPREAD
Similar Strategies	-	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	• Unlimited potential risk. • Limited profit.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.