BULL PUT SPREAD	RATIO PUT WRITE
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 Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in 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..

BULL PUT SPREAD Vs RATIO PUT WRITE - Details

	BULL PUT SPREAD	RATIO PUT WRITE
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts
Risk Profile	Limited	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

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

	BULL PUT SPREAD	RATIO PUT WRITE
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 implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future
Action	Buy OTM Put Option, Sell ITM Put Option	Sell 2 ATM Puts
Breakeven Point	Strike price of short put - net premium paid	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

BULL PUT SPREAD Vs RATIO PUT WRITE - Risk & Reward

	BULL PUT SPREAD	RATIO PUT WRITE
Maximum Profit Scenario	Max Profit = Net Premium Received	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 - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

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

	BULL PUT SPREAD	RATIO PUT WRITE
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Short Strangle and Short Straddle
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Potential loss is higher than gain. • 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.