RISK REVERSAL	LONG 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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

RISK REVERSAL Vs LONG PUT - Details

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

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

	RISK REVERSAL	LONG PUT
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.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile 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 Put Option
Breakeven Point	Premium received - Put Strike Price	Strike Price of Long Put - Premium Paid

RISK REVERSAL Vs LONG PUT - Risk & Reward

	RISK REVERSAL	LONG PUT
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs LONG PUT - Strategy Pros & Cons

	RISK REVERSAL	LONG PUT
Similar Strategies	-	Protective Call, Short Put
Disadvantage	Unlimited Risk.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	Unlimited profit.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.