BULL PUT SPREAD	RISK REVERSAL
About Strategy	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 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 Vs RISK REVERSAL - Details

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

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

	BULL PUT SPREAD	RISK REVERSAL
Market View	Bullish	Bullish
When to use?	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.	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	Buy OTM Put Option, Sell ITM 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 of short put - net premium paid	Premium received - Put Strike Price

BULL PUT SPREAD Vs RISK REVERSAL - Risk & Reward

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

BULL PUT SPREAD Vs RISK REVERSAL - Strategy Pros & Cons

	BULL PUT SPREAD	RISK REVERSAL
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	-
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	Unlimited Risk.
Advantages	• 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.	Unlimited profit.