BEAR PUT SPREAD	RISK REVERSAL
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM 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..

BEAR PUT SPREAD Vs RISK REVERSAL - Details

	BEAR PUT SPREAD	RISK REVERSAL
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price of Long Put - Net Premium	Premium received - Put Strike Price

BEAR PUT SPREAD Vs RISK REVERSAL - When & How to use ?

	BEAR PUT SPREAD	RISK REVERSAL
Market View	Bearish	Bullish
When to use?	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	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 ITM Put Option, Sell OTM Put Option	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	Strike Price of Long Put - Net Premium	Premium received - Put Strike Price

BEAR PUT SPREAD Vs RISK REVERSAL - Risk & Reward

	BEAR PUT SPREAD	RISK REVERSAL
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Max Loss = Net Premium Paid.	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs RISK REVERSAL - Strategy Pros & Cons

	BEAR PUT SPREAD	RISK REVERSAL
Similar Strategies	Bear Call Spread, Bull Call Spread	-
Disadvantage	• Limited profit. • Early assignment risk.	Unlimited Risk.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	Unlimited profit.