LONG CALL	RATIO PUT SPREAD
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: 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 CALL Vs RATIO PUT SPREAD - Details

	LONG CALL	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginner Level	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price + 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)

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

	LONG CALL	RATIO PUT SPREAD
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Neutral
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Buying Call option	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Strike price + 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)

LONG CALL Vs RATIO PUT SPREAD - Risk & Reward

	LONG CALL	RATIO PUT SPREAD
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

LONG CALL Vs RATIO PUT SPREAD - Strategy Pros & Cons

	LONG CALL	RATIO PUT SPREAD
Similar Strategies	Protective Put	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.	• Unlimited potential risk. • Limited profit.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• 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.