RATIO PUT SPREAD	LONG CALL BUTTERFLY
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 Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

RATIO PUT SPREAD Vs LONG CALL BUTTERFLY - Details

	RATIO PUT SPREAD	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
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)	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	RATIO PUT SPREAD	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
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 should be used when you're expecting no volatility in the price of the underlying.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
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)	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

RATIO PUT SPREAD Vs LONG CALL BUTTERFLY - Risk & Reward

	RATIO PUT SPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid	Net Premium Paid
Risk	Unlimited	Limited
Reward	Limited	Limited

RATIO PUT SPREAD Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	RATIO PUT SPREAD	LONG CALL BUTTERFLY
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	-
Disadvantage	• Unlimited potential risk. • Limited profit.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
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.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.