BEAR PUT SPREAD	RATIO CALL SPREAD
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM Read more..	Ratio Call Spread Option Strategy  As the name suggests, a ratio of 2:1 is followed i.e. buy 1 ITM Call and simultaneously sell OTM Calls double the number of ITM Calls (In this case 2). This strategy is used by 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 since he is .. Read more..

BEAR PUT SPREAD Vs RATIO CALL SPREAD - Details

	BEAR PUT SPREAD	RATIO CALL SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

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

	BEAR PUT SPREAD	RATIO CALL SPREAD
Market View	Bearish	Neutral
When to use?	The bear call spread options 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.	This strategy is used by 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 since he is selling two calls.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy 1 ITM Call, Sell 2 OTM Calls
Breakeven Point	Strike Price of Long Put - Net Premium	Upper Breakeven Point = Strike Price of Short Calls + (Points of Maximum Profit / Number of Uncovered Calls), Lower Breakeven Point = Strike Price of Long Call +/- Net Premium Paid or Received

BEAR PUT SPREAD Vs RATIO CALL SPREAD - Risk & Reward

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

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

	BEAR PUT SPREAD	RATIO CALL SPREAD
Similar Strategies	Bear Call Spread, Bull Call Spread	Variable Ratio Write
Disadvantage	• Limited profit. • Early assignment risk.	• Unlimited potential loss. • Complex strategy with limited profit.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	• Downside risk is almost zero. • Investors can book profit from share prices moving within given limits. • Trader can maximise profit when the share closes at the upper breakeven point.