SHORT PUT LADDER	RATIO CALL SPREAD
About Strategy	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by 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 since he is .. Read more..

SHORT PUT LADDER Vs RATIO CALL SPREAD - Details

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

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

	SHORT PUT LADDER	RATIO CALL SPREAD
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This strategy is used by 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 since he is selling two calls.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

SHORT PUT LADDER Vs RATIO CALL SPREAD - Risk & Reward

	SHORT PUT LADDER	RATIO CALL SPREAD
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs RATIO CALL SPREAD - Strategy Pros & Cons

	SHORT PUT LADDER	RATIO CALL SPREAD
Similar Strategies	Strap, Strip	Variable Ratio Write
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.