RISK REVERSAL	PROTECTIVE CALL
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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

RISK REVERSAL Vs PROTECTIVE CALL - Details

	RISK REVERSAL	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call 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	Sale Price of Underlying + Premium Paid

RISK REVERSAL Vs PROTECTIVE CALL - When & How to use ?

	RISK REVERSAL	PROTECTIVE CALL
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.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy 1 ATM Call
Breakeven Point	Premium received - Put Strike Price	Sale Price of Underlying + Premium Paid

RISK REVERSAL Vs PROTECTIVE CALL - Risk & Reward

	RISK REVERSAL	PROTECTIVE CALL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs PROTECTIVE CALL - Strategy Pros & Cons

	RISK REVERSAL	PROTECTIVE CALL
Similar Strategies	-	Put Backspread, Long Put
Disadvantage	Unlimited Risk.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	Unlimited profit.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.