CALL BACKSPREAD	RATIO PUT SPREAD
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 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..

CALL BACKSPREAD Vs RATIO PUT SPREAD - Details

	CALL BACKSPREAD	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	3
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 Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

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

	CALL BACKSPREAD	RATIO PUT SPREAD
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	Buy 1 ITM Put, Sell 2 OTM Puts
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 Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

CALL BACKSPREAD Vs RATIO PUT SPREAD - Risk & Reward

	CALL BACKSPREAD	RATIO PUT SPREAD
Maximum Profit Scenario	Unlimited profit potential if the stock goes in upward direction.	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of long call - Strike Price of short call - Net premium received	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

CALL BACKSPREAD Vs RATIO PUT SPREAD - Strategy Pros & Cons

	CALL BACKSPREAD	RATIO PUT SPREAD
Similar Strategies	-	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage		• Unlimited potential risk. • Limited profit.
Advantages	• Unlimited profit potential.	• 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.