LONG COMBO	RISK REVERSAL
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received 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..

LONG COMBO Vs RISK REVERSAL - Details

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

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

	LONG COMBO	RISK REVERSAL
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.	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	Sell OTM Put Option, Buy OTM Call Option	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	Call Strike + Net Premium	Premium received - Put Strike Price

LONG COMBO Vs RISK REVERSAL - Risk & Reward

	LONG COMBO	RISK REVERSAL
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	You have nearly unlimited downside risk as well because you are short the put
Risk	Unlimited	Unlimited
Reward	Unlimited	Unlimited

LONG COMBO Vs RISK REVERSAL - Strategy Pros & Cons

	LONG COMBO	RISK REVERSAL
Similar Strategies	-	-
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	Unlimited Risk.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.	Unlimited profit.