SHORT CALL BUTTERFLY	RATIO PUT SPREAD
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the 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..

SHORT CALL BUTTERFLY Vs RATIO PUT SPREAD - Details

	SHORT CALL BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	4	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	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)

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

	SHORT CALL BUTTERFLY	RATIO PUT SPREAD
Market View	Neutral	Neutral
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	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)

SHORT CALL BUTTERFLY Vs RATIO PUT SPREAD - Risk & Reward

	SHORT CALL BUTTERFLY	RATIO PUT SPREAD
Maximum Profit Scenario	The profit is limited to the net premium received.	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs RATIO PUT SPREAD - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	RATIO PUT SPREAD
Similar Strategies	Long Straddle, Long Call Butterfly	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Unlimited potential risk. • Limited profit.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	• 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.