BULL CALL SPREAD	RISK REVERSAL
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. 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..

BULL CALL SPREAD Vs RISK REVERSAL - Details

	BULL CALL SPREAD	RISK REVERSAL
Market View	Bullish	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	Limited	Unlimited
Breakeven Point	Strike price of purchased call + net premium paid	Premium received - Put Strike Price

BULL CALL SPREAD Vs RISK REVERSAL - When & How to use ?

	BULL CALL SPREAD	RISK REVERSAL
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in 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	Buy ITM Call Option, Sell OTM Call Option	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	Strike price of purchased call + net premium paid	Premium received - Put Strike Price

BULL CALL SPREAD Vs RISK REVERSAL - Risk & Reward

	BULL CALL SPREAD	RISK REVERSAL
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Net Premium Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Limited	Unlimited

BULL CALL SPREAD Vs RISK REVERSAL - Strategy Pros & Cons

	BULL CALL SPREAD	RISK REVERSAL
Similar Strategies	Collar	-
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	Unlimited Risk.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	Unlimited profit.