RISK REVERSAL	STRIP
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..	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the .. Read more..

RISK REVERSAL Vs STRIP - Details

	RISK REVERSAL	STRIP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

RISK REVERSAL Vs STRIP - When & How to use ?

	RISK REVERSAL	STRIP
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.	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.
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, Buy 2 ATM Puts
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)

RISK REVERSAL Vs STRIP - Risk & Reward

	RISK REVERSAL	STRIP
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Net Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs STRIP - Strategy Pros & Cons

	RISK REVERSAL	STRIP
Similar Strategies	-	Strap, Short Put Ladder
Disadvantage	Unlimited Risk.	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.
Advantages	Unlimited profit.	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.