RISK REVERSAL	SHORT 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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

RISK REVERSAL Vs SHORT CALL - Details

	RISK REVERSAL	SHORT 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	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Premium received - Put Strike Price	Strike Price of Short Call + Premium Received

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

	RISK REVERSAL	SHORT 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.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell or Write Call Option
Breakeven Point	Premium received - Put Strike Price	Strike Price of Short Call + Premium Received

RISK REVERSAL Vs SHORT CALL - Risk & Reward

	RISK REVERSAL	SHORT CALL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Max Profit = Premium Received
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Unlimited	Unlimited
Reward	Unlimited	Limited

RISK REVERSAL Vs SHORT CALL - Strategy Pros & Cons

	RISK REVERSAL	SHORT CALL
Similar Strategies	-	Covered Put, Covered Calls
Disadvantage	Unlimited Risk.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	Unlimited profit.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.