SHORT CALL	RATIO PUT 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 Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in 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 PUT WRITE - Details

	SHORT CALL	RATIO PUT WRITE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts
Risk Profile	Unlimited	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received
Breakeven Point	Strike Price of Short Call + Premium Received	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

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

	SHORT CALL	RATIO PUT 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 implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future
Action	Sell or Write Call Option	Sell 2 ATM Puts
Breakeven Point	Strike Price of Short Call + Premium Received	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

SHORT CALL Vs RATIO PUT WRITE - Risk & Reward

	SHORT CALL	RATIO PUT 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 - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Unlimited	Unlimited
Reward	Limited	Limited

SHORT CALL Vs RATIO PUT WRITE - Strategy Pros & Cons

	SHORT CALL	RATIO PUT WRITE
Similar Strategies	Covered Put, Covered Calls	Short Strangle and Short Straddle
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.