RATIO PUT WRITE	LONG 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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

RATIO PUT WRITE Vs LONG PUT - Details

	RATIO PUT WRITE	LONG PUT
Market View	Neutral	Bearish
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	Unlimited
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	Limited
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 of Long Put - Premium Paid

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

	RATIO PUT WRITE	LONG PUT
Market View	Neutral	Bearish
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	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Sell 2 ATM Puts	Buy 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 of Long Put - Premium Paid

RATIO PUT WRITE Vs LONG PUT - Risk & Reward

	RATIO PUT WRITE	LONG PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Profit = Strike Price of Long Put - Premium Paid
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	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO PUT WRITE Vs LONG PUT - Strategy Pros & Cons

	RATIO PUT WRITE	LONG PUT
Similar Strategies	Short Strangle and Short Straddle	Protective Call, Short Put
Disadvantage	• Potential loss is higher than gain. • Limited profit.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages		• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.