RISK REVERSAL	BULL PUT 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 Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

RISK REVERSAL Vs BULL PUT SPREAD - Details

	RISK REVERSAL	BULL PUT SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Strike price of short put - net premium paid

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

	RISK REVERSAL	BULL PUT 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.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Premium received - Put Strike Price	Strike price of short put - net premium paid

RISK REVERSAL Vs BULL PUT SPREAD - Risk & Reward

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

RISK REVERSAL Vs BULL PUT SPREAD - Strategy Pros & Cons

	RISK REVERSAL	BULL PUT SPREAD
Similar Strategies	-	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	Unlimited Risk.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	Unlimited profit.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.