RATIO PUT SPREAD	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

RATIO PUT SPREAD Vs PUT BACKSPREAD - Details

	RATIO PUT SPREAD	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	2
Strategy Level	Beginners	Advance
Reward Profile	Limited
Risk Profile	Unlimited
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)

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

	RATIO PUT SPREAD	PUT BACKSPREAD
Market View	Neutral	Bearish
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.
Action	Buy 1 ITM Put, Sell 2 OTM Puts
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)

RATIO PUT SPREAD Vs PUT BACKSPREAD - Risk & Reward

	RATIO PUT SPREAD	PUT BACKSPREAD
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO PUT SPREAD Vs PUT BACKSPREAD - Strategy Pros & Cons

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