RATIO CALL WRITE	BEAR PUT SPREAD
About Strategy	Ratio Call Write Option Strategy  This 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. 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 CALL WRITE Vs BEAR PUT SPREAD - Details

	RATIO CALL WRITE	BEAR PUT SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
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	Strike Price of Long Put - Net Premium

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

	RATIO CALL WRITE	BEAR PUT SPREAD
Market View	Neutral	Bearish
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.	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 Calls	Buy ITM Put Option, Sell OTM Put Option
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	Strike Price of Long Put - Net Premium

RATIO CALL WRITE Vs BEAR PUT SPREAD - Risk & Reward

	RATIO CALL 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 - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid	Max Loss = Net Premium Paid.
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	RATIO CALL WRITE	BEAR PUT SPREAD
Similar Strategies	Variable Ratio Write	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.