BEAR PUT SPREAD	RATIO PUT WRITE
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM 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..

BEAR PUT SPREAD Vs RATIO PUT WRITE - Details

	BEAR PUT SPREAD	RATIO PUT WRITE
Market View	Bearish	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 Long Put - Net Premium	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

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

	BEAR PUT SPREAD	RATIO PUT WRITE
Market View	Bearish	Neutral
When to use?	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	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 ITM Put Option, Sell OTM Put Option	Sell 2 ATM Puts
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

BEAR PUT SPREAD Vs RATIO PUT WRITE - Risk & Reward

	BEAR PUT SPREAD	RATIO PUT WRITE
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	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

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

	BEAR PUT SPREAD	RATIO PUT WRITE
Similar Strategies	Bear Call Spread, Bull Call Spread	Short Strangle and Short Straddle
Disadvantage	• Limited profit. • Early assignment risk.	• Potential loss is higher than gain. • Limited profit.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.