BULL CALL SPREAD	RATIO CALL SPREAD
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. 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..

BULL CALL SPREAD Vs RATIO CALL SPREAD - Details

	BULL CALL SPREAD	RATIO CALL SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of purchased call + net premium paid	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

BULL CALL SPREAD Vs RATIO CALL SPREAD - When & How to use ?

	BULL CALL SPREAD	RATIO CALL SPREAD
Market View	Bullish	Neutral
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	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	Buy ITM Call Option, Sell OTM Call Option	Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point	Strike price of purchased call + net premium paid	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

BULL CALL SPREAD Vs RATIO CALL SPREAD - Risk & Reward

	BULL CALL SPREAD	RATIO CALL SPREAD
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL CALL SPREAD Vs RATIO CALL SPREAD - Strategy Pros & Cons

	BULL CALL SPREAD	RATIO CALL SPREAD
Similar Strategies	Collar	Variable Ratio Write
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	• 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.