SHORT PUT	RATIO CALL WRITE
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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..

SHORT PUT Vs RATIO CALL WRITE - Details

	SHORT PUT	RATIO CALL WRITE
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

SHORT PUT Vs RATIO CALL WRITE - When & How to use ?

	SHORT PUT	RATIO CALL WRITE
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell Put Option	Sell 2 ATM Calls
Breakeven Point	Strike Price - Premium	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

SHORT PUT Vs RATIO CALL WRITE - Risk & Reward

	SHORT PUT	RATIO CALL WRITE
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	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	Unlimited	Unlimited
Reward	Limited	Limited

SHORT PUT Vs RATIO CALL WRITE - Strategy Pros & Cons

	SHORT PUT	RATIO CALL WRITE
Similar Strategies	Bull Put Spread, Short Starddle	Variable Ratio Write
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Potential loss is higher than gain. • Limited profit.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.