LONG PUT BUTTERFLY	RATIO PUT SPREAD
About Strategy	Long Put Butterfly Option Strategy  The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future. This strategy involves sale of 2 ATM Put Options, buy 1 ITM and 1 OTM Put Option. The risk and reward are limited. 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..

LONG PUT BUTTERFLY Vs RATIO PUT SPREAD - Details

	LONG PUT BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid	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)

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

	LONG PUT BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
When to use?	The Long Put Butterfly is a neutral strategy where a trader will be bearish on the volatility i.e. he thinks the market will have sideways kind of movement and will not rally sharply in either direction in the near future.	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 OTM Put, Sell 2 ATM Puts, Buy 1 ITM Put	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Long Put - Net Premium Paid, Lower Breakeven Point = Strike Price of Lowest Strike Long Put + Net Premium Paid	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)

LONG PUT BUTTERFLY Vs RATIO PUT SPREAD - Risk & Reward

	LONG PUT BUTTERFLY	RATIO PUT SPREAD
Maximum Profit Scenario	Strike Price of Higher Strike Long Put - Strike Price of Short Put - Net Premium Paid - Commissions Paid	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	When Price of Underlying <= Strike Price of Lower Strike Long Put OR Price of Underlying >= Strike Price of Higher Strike Long Put	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	LONG PUT BUTTERFLY	RATIO PUT SPREAD
Similar Strategies	Iron Condors, Iron Butterfly	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Risk is higher than reward. • When the underlying price is in between the two breakeven points, time decay hurts the position.	• Unlimited potential risk. • Limited profit.
Advantages	• Limited maximum loss. • Unlimited profit potential, risk only limited to loss of premium. • Benefits from low volatility.	• 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.