SHORT PUT	RATIO PUT SPREAD
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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 PUT Vs RATIO PUT SPREAD - Details

	SHORT PUT	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	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)

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

	SHORT PUT	RATIO PUT SPREAD
Market View	Bullish	Neutral
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Sell Put 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)

SHORT PUT Vs RATIO PUT SPREAD - Risk & Reward

	SHORT PUT	RATIO PUT SPREAD
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT PUT Vs RATIO PUT SPREAD - Strategy Pros & Cons

	SHORT PUT	RATIO PUT SPREAD
Similar Strategies	Bull Put Spread, Short Starddle	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Unlimited potential risk. • Limited profit.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• 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.