RISK REVERSAL	SHORT STRADDLE
About Strategy	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..	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

RISK REVERSAL Vs SHORT STRADDLE - Details

	RISK REVERSAL	SHORT STRADDLE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Premium received - Put Strike Price	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

RISK REVERSAL Vs SHORT STRADDLE - When & How to use ?

	RISK REVERSAL	SHORT STRADDLE
Market View	Bullish	Neutral
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell Call Option, Sell Put Option
Breakeven Point	Premium received - Put Strike Price	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

RISK REVERSAL Vs SHORT STRADDLE - Risk & Reward

	RISK REVERSAL	SHORT STRADDLE
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Max Profit = Net Premium Received - Commissions Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

RISK REVERSAL Vs SHORT STRADDLE - Strategy Pros & Cons

	RISK REVERSAL	SHORT STRADDLE
Similar Strategies	-	Short Strangle
Disadvantage	Unlimited Risk.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	Unlimited profit.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .