LONG CALL	RISK REVERSAL
About Strategy	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: 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..

LONG CALL Vs RISK REVERSAL - Details

	LONG CALL	RISK REVERSAL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginner Level	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Strike Price + Premium	Premium received - Put Strike Price

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

	LONG CALL	RISK REVERSAL
Market View	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)	Bullish
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	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	Buying Call 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 + Premium	Premium received - Put Strike Price

LONG CALL Vs RISK REVERSAL - Risk & Reward

	LONG CALL	RISK REVERSAL
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Premium Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

LONG CALL Vs RISK REVERSAL - Strategy Pros & Cons

	LONG CALL	RISK REVERSAL
Similar Strategies	Protective Put	-
Disadvantage	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.	Unlimited Risk.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	Unlimited profit.