RATIO PUT SPREAD	SHORT PUT
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..	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 PUT SPREAD Vs SHORT PUT - Details

	RATIO PUT SPREAD	SHORT PUT
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
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)	Strike Price - Premium

RATIO PUT SPREAD Vs SHORT PUT - When & How to use ?

	RATIO PUT SPREAD	SHORT PUT
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Sell Put Option
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)	Strike Price - Premium

RATIO PUT SPREAD Vs SHORT PUT - Risk & Reward

	RATIO PUT SPREAD	SHORT PUT
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Unlimited	Unlimited
Reward	Limited	Limited

RATIO PUT SPREAD Vs SHORT PUT - Strategy Pros & Cons

	RATIO PUT SPREAD	SHORT PUT
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	Bull Put Spread, Short Starddle
Disadvantage	• Unlimited potential risk. • Limited profit.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.	• 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.