RISK REVERSAL	RISK REVERSAL
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..	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..

RISK REVERSAL Vs RISK REVERSAL - Details

	RISK REVERSAL	RISK REVERSAL
Market View	Bullish	Bullish
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	Unlimited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Premium received - Put Strike Price	Premium received - Put Strike Price

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

	RISK REVERSAL	RISK REVERSAL
Market View	Bullish	Bullish
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 can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a 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	Premium received - Put Strike Price	Premium received - Put Strike Price

RISK REVERSAL Vs RISK REVERSAL - Risk & Reward

	RISK REVERSAL	RISK REVERSAL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	You have nearly unlimited downside risk as well because you are short the put
Risk	Unlimited	Unlimited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs RISK REVERSAL - Strategy Pros & Cons

	RISK REVERSAL	RISK REVERSAL
Similar Strategies	-	-
Disadvantage	Unlimited Risk.	Unlimited Risk.
Advantages	Unlimited profit.	Unlimited profit.