RISK REVERSAL	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

RISK REVERSAL Vs CALL BACKSPREAD - Details

	RISK REVERSAL	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

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

	RISK REVERSAL	CALL BACKSPREAD
Market View	Bullish	Bullish
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 when the investor expects the price of the stock to rise in the future.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Premium received - Put Strike Price	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

RISK REVERSAL Vs CALL BACKSPREAD - Risk & Reward

	RISK REVERSAL	CALL BACKSPREAD
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs CALL BACKSPREAD - Strategy Pros & Cons

	RISK REVERSAL	CALL BACKSPREAD
Similar Strategies	-	-
Disadvantage	Unlimited Risk.
Advantages	Unlimited profit.	• Unlimited profit potential.