STRIP	RATIO PUT SPREAD
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the 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..

STRIP Vs RATIO PUT SPREAD - Details

	STRIP	RATIO PUT SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	3	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	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)

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

	STRIP	RATIO PUT SPREAD
Market View	Neutral	Neutral
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	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)

STRIP Vs RATIO PUT SPREAD - Risk & Reward

	STRIP	RATIO PUT SPREAD
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

STRIP Vs RATIO PUT SPREAD - Strategy Pros & Cons

	STRIP	RATIO PUT SPREAD
Similar Strategies	Strap, Short Put Ladder	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• Unlimited potential risk. • Limited profit.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• 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.