RATIO CALL WRITE	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

RATIO CALL WRITE Vs PUT BACKSPREAD - Details

	RATIO CALL WRITE	PUT BACKSPREAD
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
Risk Profile	Unlimited
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

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

	RATIO CALL WRITE	PUT BACKSPREAD
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.
Action	Sell 2 ATM Calls
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

RATIO CALL WRITE Vs PUT BACKSPREAD - Risk & Reward

	RATIO CALL WRITE	PUT BACKSPREAD
Maximum Profit Scenario	Net Premium Received - Commissions 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
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO CALL WRITE Vs PUT BACKSPREAD - Strategy Pros & Cons

	RATIO CALL WRITE	PUT BACKSPREAD
Similar Strategies	Variable Ratio Write
Disadvantage	• Potential loss is higher than gain. • Limited profit.
Advantages