Strategies 
Ratio Put Back Spread 
Component 
Sell 1 put with higher strike price/level and buy 2 put with lower strike price/level
1. Result in net premium received
2. Result in net premium paid 
When there is net premium paid: 
Potential Profit 
When the stock price/index level is below the breakeven point, substantial & equals to the breakeven point minus the stock price/index level 
Maximum Loss 
 When the stock price/index level is above the breakeven point
 Equals to the strike price/level difference plus net premium paid. Maximum loss exists when the stock price/index level is equal to lower strike price/level

Time Value Impact 
Negative 
Breakeven 
 Only one breakeven point exists
 Equals to lower strike price/level minus strike price/level difference minus net premium paid

Remarks 
Compared with long straddle, a Ratio Put Back Spread (with net premium paid) has substantial profit on the downside but limited loss on the upside. 