RISK REVERSAL	MARRIED 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..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

RISK REVERSAL Vs MARRIED PUT - Details

	RISK REVERSAL	MARRIED PUT
Market View	Bullish	Bullish
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	Purchase Price of Underlying + Premium Paid

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

	RISK REVERSAL	MARRIED PUT
Market View	Bullish	Bullish
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 work when the investor goes long in any stock. He expects the rise in market in future.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Premium received - Put Strike Price	Purchase Price of Underlying + Premium Paid

RISK REVERSAL Vs MARRIED PUT - Risk & Reward

	RISK REVERSAL	MARRIED PUT
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Profit = Price of Underlying - Purchase Price of Underlying - 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 MARRIED PUT - Strategy Pros & Cons

	RISK REVERSAL	MARRIED PUT
Similar Strategies	-	Long Call
Disadvantage	Unlimited Risk.	Cost of the put options eats into profit margin.
Advantages	Unlimited profit.	Unlimited Profit and Limited Risk