RISK REVERSAL	SHORT PUT
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..	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 Vs SHORT PUT - Details

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

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

	RISK REVERSAL	SHORT PUT
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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell Put Option
Breakeven Point	Premium received - Put Strike Price	Strike Price - Premium

RISK REVERSAL Vs SHORT PUT - Risk & Reward

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

RISK REVERSAL Vs SHORT PUT - Strategy Pros & Cons

	RISK REVERSAL	SHORT PUT
Similar Strategies	-	Bull Put Spread, Short Starddle
Disadvantage	Unlimited Risk.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
Advantages	Unlimited profit.	• 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.