RISK REVERSAL	BEAR CALL SPREAD
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..	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r .. Read more..

RISK REVERSAL Vs BEAR CALL SPREAD - Details

	RISK REVERSAL	BEAR CALL SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Strike Price of Short Call + Net Premium Received

RISK REVERSAL Vs BEAR CALL SPREAD - When & How to use ?

	RISK REVERSAL	BEAR CALL SPREAD
Market View	Bullish	Bearish
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 used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy OTM Call Option, Sell ITM Call Option
Breakeven Point	Premium received - Put Strike Price	Strike Price of Short Call + Net Premium Received

RISK REVERSAL Vs BEAR CALL SPREAD - Risk & Reward

	RISK REVERSAL	BEAR CALL SPREAD
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	Limited
Reward	Unlimited	Limited

RISK REVERSAL Vs BEAR CALL SPREAD - Strategy Pros & Cons

	RISK REVERSAL	BEAR CALL SPREAD
Similar Strategies	-	Bear Put Spread, Bull Call Spread
Disadvantage	Unlimited Risk.	• Limited amount of profit. • Margin requirement, more commission charges.
Advantages	Unlimited profit.	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.