CALL BACKSPREAD	RATIO CALL WRITE
About Strategy	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r Read more..	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..

CALL BACKSPREAD Vs RATIO CALL WRITE - Details

	CALL BACKSPREAD	RATIO CALL WRITE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

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

	CALL BACKSPREAD	RATIO CALL WRITE
Market View	Bullish	Neutral
When to use?	This strategy is used when the investor expects the price of the stock to rise in the future.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell 1 ITM Call, BUY 2 OTM Call	Sell 2 ATM Calls
Breakeven Point	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

CALL BACKSPREAD Vs RATIO CALL WRITE - Risk & Reward

	CALL BACKSPREAD	RATIO CALL WRITE
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	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	Limited	Unlimited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs RATIO CALL WRITE - Strategy Pros & Cons

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