SHORT PUT	RISK REVERSAL
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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..

SHORT PUT Vs RISK REVERSAL - Details

	SHORT PUT	RISK REVERSAL
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Strike Price - Premium	Premium received - Put Strike Price

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

	SHORT PUT	RISK REVERSAL
Market View	Bullish	Bullish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	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 Put 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 - Premium	Premium received - Put Strike Price

SHORT PUT Vs RISK REVERSAL - Risk & Reward

	SHORT PUT	RISK REVERSAL
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	You have nearly unlimited downside risk as well because you are short the put
Risk	Unlimited	Unlimited
Reward	Limited	Unlimited

SHORT PUT Vs RISK REVERSAL - Strategy Pros & Cons

	SHORT PUT	RISK REVERSAL
Similar Strategies	Bull Put Spread, Short Starddle	-
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	Unlimited Risk.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	Unlimited profit.