RATIO PUT SPREAD	THE COLLAR
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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

RATIO PUT SPREAD Vs THE COLLAR - Details

	RATIO PUT SPREAD	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	3	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
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)	Price of Features - Call Premium + Put Premium

RATIO PUT SPREAD Vs THE COLLAR - When & How to use ?

	RATIO PUT SPREAD	THE COLLAR
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Buy 1 ITM Put, Sell 2 OTM Puts	Buy Underlying, Buy 1 ATM Put Option, Sell 1 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)	Price of Features - Call Premium + Put Premium

RATIO PUT SPREAD Vs THE COLLAR - Risk & Reward

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

RATIO PUT SPREAD Vs THE COLLAR - Strategy Pros & Cons

	RATIO PUT SPREAD	THE COLLAR
Similar Strategies	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)	Call Spread, Bull Put Spread
Disadvantage	• Unlimited potential risk. • Limited profit.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
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.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.