RATIO PUT SPREAD	PROTECTIVE CALL
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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

RATIO PUT SPREAD Vs PROTECTIVE CALL - Details

	RATIO PUT SPREAD	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	3	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
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)	Sale Price of Underlying + Premium Paid

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

	RATIO PUT SPREAD	PROTECTIVE CALL
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 implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Buy 1 ATM Call
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)	Sale Price of Underlying + Premium Paid

RATIO PUT SPREAD Vs PROTECTIVE CALL - Risk & Reward

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

RATIO PUT SPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	RATIO PUT SPREAD	PROTECTIVE CALL
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	Put Backspread, Long Put
Disadvantage	• Unlimited potential risk. • Limited profit.	• Profitable when market moves as expected. • Not good for beginners.
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.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.