RATIO PUT SPREAD	LONG CALL
About Strategy	Ratio Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. 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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

RATIO PUT SPREAD Vs LONG CALL - Details

	RATIO PUT SPREAD	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)	Strike Price + Premium

RATIO PUT SPREAD Vs LONG CALL - When & How to use ?

	RATIO PUT SPREAD	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
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 work when an investor expect the underlying instrument move in upward direction.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Buying Call option
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)	Strike price + Premium

RATIO PUT SPREAD Vs LONG CALL - Risk & Reward

	RATIO PUT SPREAD	LONG CALL
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid	Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO PUT SPREAD Vs LONG CALL - Strategy Pros & Cons

	RATIO PUT SPREAD	LONG CALL
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	Protective Put
Disadvantage	• Unlimited potential risk. • Limited profit.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.