RATIO PUT WRITE	RISK REVERSAL
About Strategy	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in 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 PUT WRITE Vs RISK REVERSAL - Details

	RATIO PUT WRITE	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts	Unlimited
Risk Profile	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit	Premium received - Put Strike Price

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

	RATIO PUT WRITE	RISK REVERSAL
Market View	Neutral	Bullish
When to use?	This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in 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 Puts	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 Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit	Premium received - Put Strike Price

RATIO PUT WRITE Vs RISK REVERSAL - Risk & Reward

	RATIO PUT 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 - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - 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 PUT WRITE Vs RISK REVERSAL - Strategy Pros & Cons

	RATIO PUT WRITE	RISK REVERSAL
Similar Strategies	Short Strangle and Short Straddle	-
Disadvantage	• Potential loss is higher than gain. • Limited profit.	Unlimited Risk.
Advantages		Unlimited profit.