RATIO PUT WRITE	SHORT PUT
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 Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

RATIO PUT WRITE Vs SHORT PUT - Details

	RATIO PUT WRITE	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
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 - Premium

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

	RATIO PUT WRITE	SHORT PUT
Market View	Neutral	Bullish
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	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Sell 2 ATM Puts	Sell 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 - Premium

RATIO PUT WRITE Vs SHORT PUT - Risk & Reward

	RATIO PUT WRITE	SHORT PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Premium received in your account when you sell the Put Option.
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	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

RATIO PUT WRITE Vs SHORT PUT - Strategy Pros & Cons

	RATIO PUT WRITE	SHORT PUT
Similar Strategies	Short Strangle and Short Straddle	Bull Put Spread, Short Starddle
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages		• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.