BULL PUT SPREAD	RATIO CALL SPREAD
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem Read more..	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by 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 since he is .. Read more..

BULL PUT SPREAD Vs RATIO CALL SPREAD - Details

	BULL PUT SPREAD	RATIO CALL SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	BULL PUT SPREAD	RATIO CALL SPREAD
Market View	Bullish	Neutral
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	This strategy is used by 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 since he is selling two calls.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

BULL PUT SPREAD Vs RATIO CALL SPREAD - Risk & Reward

	BULL PUT SPREAD	RATIO CALL SPREAD
Maximum Profit Scenario	Max Profit = Net Premium Received	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

BULL PUT SPREAD Vs RATIO CALL SPREAD - Strategy Pros & Cons

	BULL PUT SPREAD	RATIO CALL SPREAD
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Variable Ratio Write
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.