RATIO CALL WRITE	RISK REVERSAL
About Strategy	Ratio Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. 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..	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod .. Read more..

RATIO CALL WRITE Vs RISK REVERSAL - Details

	RATIO CALL WRITE	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit	Premium received - Put Strike Price

RATIO CALL WRITE Vs RISK REVERSAL - When & How to use ?

	RATIO CALL WRITE	RISK REVERSAL
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 can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Sell 2 ATM Calls	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit	Premium received - Put Strike Price

RATIO CALL WRITE Vs RISK REVERSAL - Risk & Reward

	RATIO CALL WRITE	RISK REVERSAL
Maximum Profit Scenario	Net Premium Received - Commissions Paid	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Purchase Price of Underlying - Price of Underlying - Net Premium Received + Commissions Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Unlimited	Unlimited
Reward	Limited	Unlimited

RATIO CALL WRITE Vs RISK REVERSAL - Strategy Pros & Cons

	RATIO CALL WRITE	RISK REVERSAL
Similar Strategies	Variable Ratio Write	-
Disadvantage	• Potential loss is higher than gain. • Limited profit.	Unlimited Risk.
Advantages		Unlimited profit.