IRON CONDORS	RISK REVERSAL
About Strategy	Iron Condors Option Strategy Iron Condor is a neutral trading strategy. A trader tries to make profit from low volatility in the price of the underlying asset. This strategy will be better understood if you recall ‘Bull Put Spread’ & ‘Bear Call Spread’. A trader will buy one Deep OTM Put Option and sell one OTM Put Option,. He will also sell one OTM Call Option and buy one Deep OTM Call Option. 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..

IRON CONDORS Vs RISK REVERSAL - Details

	IRON CONDORS	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Premium received - Put Strike Price

IRON CONDORS Vs RISK REVERSAL - When & How to use ?

	IRON CONDORS	RISK REVERSAL
Market View	Neutral	Bullish
When to use?	When a trader tries to make profit from low volatility in the price of the underlying asset.	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 1 OTM Put, Buy 1 OTM Put (Lower Strike), Sell 1 OTM Call, Buy 1 OTM Call (Higher Strike)	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 Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Premium received - Put Strike Price

IRON CONDORS Vs RISK REVERSAL - Risk & Reward

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

IRON CONDORS Vs RISK REVERSAL - Strategy Pros & Cons

	IRON CONDORS	RISK REVERSAL
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	-
Disadvantage	• Full of risk. • Unlimited maximum loss.	Unlimited Risk.
Advantages	• Chance to gather double premium. • Sure, maximum gains on one-half the trade. • Flexible and double leverage at half price.	Unlimited profit.