RATIO CALL WRITE	PROTECTIVE CALL
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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

RATIO CALL WRITE Vs PROTECTIVE CALL - Details

	RATIO CALL WRITE	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
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	Sale Price of Underlying + Premium Paid

RATIO CALL WRITE Vs PROTECTIVE CALL - When & How to use ?

	RATIO CALL WRITE	PROTECTIVE CALL
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.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell 2 ATM Calls	Buy 1 ATM Call
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	Sale Price of Underlying + Premium Paid

RATIO CALL WRITE Vs PROTECTIVE CALL - Risk & Reward

	RATIO CALL WRITE	PROTECTIVE CALL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Sale Price of Underlying - Price of Underlying - 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	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO CALL WRITE Vs PROTECTIVE CALL - Strategy Pros & Cons

	RATIO CALL WRITE	PROTECTIVE CALL
Similar Strategies	Variable Ratio Write	Put Backspread, Long Put
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• Profitable when market moves as expected. • Not good for beginners.
Advantages		• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.