SHORT CALL	RATIO CALL WRITE
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy Read more..	Ratio Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. 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 Vs RATIO CALL WRITE - Details

	SHORT CALL	RATIO CALL WRITE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price of Short Call + Premium Received	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

SHORT CALL Vs RATIO CALL WRITE - When & How to use ?

	SHORT CALL	RATIO CALL WRITE
Market View	Bearish	Neutral
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell or Write Call Option	Sell 2 ATM Calls
Breakeven Point	Strike Price of Short Call + Premium Received	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

SHORT CALL Vs RATIO CALL WRITE - Risk & Reward

	SHORT CALL	RATIO CALL WRITE
Maximum Profit Scenario	Max Profit = Premium Received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT CALL Vs RATIO CALL WRITE - Strategy Pros & Cons

	SHORT CALL	RATIO CALL WRITE
Similar Strategies	Covered Put, Covered Calls	Variable Ratio Write
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Potential loss is higher than gain. • Limited profit.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.