RATIO PUT SPREAD	LONG COMBO
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..	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

RATIO PUT SPREAD Vs LONG COMBO - Details

	RATIO PUT SPREAD	LONG COMBO
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Unlimited
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)	Call Strike + Net Premium

RATIO PUT SPREAD Vs LONG COMBO - When & How to use ?

	RATIO PUT SPREAD	LONG COMBO
Market View	Neutral	Bullish
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 used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Sell OTM Put Option, Buy OTM Call Option
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)	Call Strike + Net Premium

RATIO PUT SPREAD Vs LONG COMBO - Risk & Reward

	RATIO PUT SPREAD	LONG COMBO
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Short Put + Net Premium Received - Commissions Paid	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	Strike Price of Short - Price of Underlying - Max Profit + Commissions Paid	Underlying asset goes down and Put option exercised
Risk	Unlimited	Unlimited
Reward	Limited	Unlimited

RATIO PUT SPREAD Vs LONG COMBO - Strategy Pros & Cons

	RATIO PUT SPREAD	LONG COMBO
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	-
Disadvantage	• Unlimited potential risk. • Limited profit.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
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.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.