RISK REVERSAL	BULL 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..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

RISK REVERSAL Vs BULL CALL SPREAD - Details

	RISK REVERSAL	BULL CALL SPREAD
Market View	Bullish	Bullish
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 purchased call + net premium paid

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

	RISK REVERSAL	BULL CALL SPREAD
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 is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Premium received - Put Strike Price	Strike price of purchased call + net premium paid

RISK REVERSAL Vs BULL CALL SPREAD - Risk & Reward

	RISK REVERSAL	BULL CALL SPREAD
Maximum Profit Scenario	You have unlimited profit potential to the upside.	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Net Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Limited

RISK REVERSAL Vs BULL CALL SPREAD - Strategy Pros & Cons

	RISK REVERSAL	BULL CALL SPREAD
Similar Strategies	-	Collar
Disadvantage	Unlimited Risk.	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
Advantages	Unlimited profit.	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.