RATIO PUT SPREAD	BEAR CALL SPREAD
About Strategy	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..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

RATIO PUT SPREAD Vs BEAR CALL SPREAD - Details

	RATIO PUT SPREAD	BEAR CALL SPREAD
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	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)	Strike Price of Short Call + Net Premium Received

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

	RATIO PUT SPREAD	BEAR CALL SPREAD
Market View	Neutral	Bearish
When to use?	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.	This 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.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	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)	Strike Price of Short Call + Net Premium Received

RATIO PUT SPREAD Vs BEAR CALL SPREAD - Risk & Reward

	RATIO PUT SPREAD	BEAR CALL SPREAD
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Limited
Reward	Limited	Limited

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

	RATIO PUT SPREAD	BEAR CALL SPREAD
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	Bear Put Spread, Bull Call Spread
Disadvantage	• Unlimited potential risk. • Limited profit.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	• 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.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.