RATIO PUT SPREAD	CALL 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..	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 Vs CALL BACKSPREAD - Details

	RATIO PUT SPREAD	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
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)	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	RATIO PUT SPREAD	CALL BACKSPREAD
Market View	Neutral	Bullish
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 is used when the investor expects the price of the stock to rise in the future.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Sell 1 ITM Call, BUY 2 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)	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

RATIO PUT SPREAD Vs CALL BACKSPREAD - Risk & Reward

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

RATIO PUT SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons

	RATIO PUT SPREAD	CALL 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.	• Unlimited profit potential.