LONG PUT	RATIO PUT SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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 Vs RATIO PUT SPREAD - Details

	LONG PUT	RATIO PUT SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - 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 Vs RATIO PUT SPREAD - When & How to use ?

	LONG PUT	RATIO PUT SPREAD
Market View	Bearish	Neutral
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in 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 Put Option	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Strike Price of Long Put - 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 Vs RATIO PUT SPREAD - Risk & Reward

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

LONG PUT Vs RATIO PUT SPREAD - Strategy Pros & Cons

	LONG PUT	RATIO PUT SPREAD
Similar Strategies	Protective Call, Short Put	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Unlimited potential risk. • Limited profit.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.