RISK REVERSAL	RATIO CALL WRITE
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..	Ratio Call Write Option Strategy  This strategy involves buying of an underlying asset in the cash/futures market and simultaneously selling ATM Calls double the number of long quantity. This strategy is used by a trader who is neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. Read more..

RISK REVERSAL Vs RATIO CALL WRITE - Details

	RISK REVERSAL	RATIO CALL WRITE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Unlimited
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

RISK REVERSAL Vs RATIO CALL WRITE - When & How to use ?

	RISK REVERSAL	RATIO CALL WRITE
Market View	Bullish	Neutral
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 used by a trader who is neutral on the market and bearish on the volatility in the near future.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell 2 ATM Calls
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Short Calls + Points of Maximum Profit, Lower Breakeven Point = Strike Price of Short Calls - Points of Maximum Profit

RISK REVERSAL Vs RATIO CALL WRITE - Risk & Reward

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

RISK REVERSAL Vs RATIO CALL WRITE - Strategy Pros & Cons

	RISK REVERSAL	RATIO CALL WRITE
Similar Strategies	-	Variable Ratio Write
Disadvantage	Unlimited Risk.	• Potential loss is higher than gain. • Limited profit.
Advantages	Unlimited profit.