REVERSE IRON CONDOR	RISK REVERSAL
About Strategy	Reverse Iron Condor Option Strategy Reverse Iron Condor as the name suggests is the opposite of Iron Condors. In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction. Here a trader will buy 1 OTM Call Option, sell 1 Deep OTM Call Option, buy 1 OTM Put Option, sell 1 Deep OTM Put Option. This strategy also 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..

REVERSE IRON CONDOR Vs RISK REVERSAL - Details

	REVERSE IRON CONDOR	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Premium received - Put Strike Price

REVERSE IRON CONDOR Vs RISK REVERSAL - When & How to use ?

	REVERSE IRON CONDOR	RISK REVERSAL
Market View	Neutral	Bullish
When to use?	In Reverse Iron Condor, a trader is bullish about volatility and expects the market to make a significant move in the near future in either direction	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 1 OTM Put, Sell 1 OTM Put (Lower Strike), Buy 1 OTM Call, Sell 1 OTM Call (Higher Strike)	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Premium received - Put Strike Price

REVERSE IRON CONDOR Vs RISK REVERSAL - Risk & Reward

	REVERSE IRON CONDOR	RISK REVERSAL
Maximum Profit Scenario	Strike Price of Short Call (or Long Put) - Strike Price of Long Call (or Short Put) - Net Premium Paid - Commissions Paid	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Limited	Unlimited

REVERSE IRON CONDOR Vs RISK REVERSAL - Strategy Pros & Cons

	REVERSE IRON CONDOR	RISK REVERSAL
Similar Strategies	Short Condor	-
Disadvantage	• Potential loss is higher than gain. • Limited profit.	Unlimited Risk.
Advantages	• Able to profit whether stocks move in either direction up or down. • This strategy can be used by option traders who cannot use credit spreads. • Predictable maximum loss and profits.	Unlimited profit.