RATIO CALL SPREAD	SHORT PUT LADDER
About Strategy	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..	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

RATIO CALL SPREAD Vs SHORT PUT LADDER - Details

	RATIO CALL SPREAD	SHORT PUT LADDER
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	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	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

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

	RATIO CALL SPREAD	SHORT PUT LADDER
Market View	Neutral	Neutral
When to use?	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.	This strategy is implemented when a trader is slightly bearish on the market.
Action	Buy 1 ITM Call, Sell 2 OTM Calls	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	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	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

RATIO CALL SPREAD Vs SHORT PUT LADDER - Risk & Reward

	RATIO CALL SPREAD	SHORT PUT LADDER
Maximum Profit Scenario	Strike Price of Short Call - Strike Price of Long Call + Net Premium Received - Commissions Paid	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Calls - Max Profit + Commissions Paid	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

RATIO CALL SPREAD Vs SHORT PUT LADDER - Strategy Pros & Cons

	RATIO CALL SPREAD	SHORT PUT LADDER
Similar Strategies	Variable Ratio Write	Strap, Strip
Disadvantage	• Unlimited potential loss. • Complex strategy with limited profit.	• Best to use when you are confident about movement of market. • Small margin required.
Advantages	• 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.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.