RISK REVERSAL	RATIO PUT SPREAD
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 Put Spread Option Strategy  This strategy involves buying ITM Puts and simultaneously selling OTM Puts, double the number of ITM Puts. 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 PUT SPREAD - Details

	RISK REVERSAL	RATIO PUT SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
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 Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

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

	RISK REVERSAL	RATIO PUT SPREAD
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.	Buy 1 ITM Put, Sell 2 OTM Puts
Breakeven Point	Premium received - Put Strike Price	Upper Breakeven Point = Strike Price of Long Put +/- Net Premium Received or Paid, Lower Breakeven Point = Strike Price of Short Puts - (Points of Maximum Profit / Number of Uncovered Puts)

RISK REVERSAL Vs RATIO PUT SPREAD - Risk & Reward

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

RISK REVERSAL Vs RATIO PUT SPREAD - Strategy Pros & Cons

	RISK REVERSAL	RATIO PUT SPREAD
Similar Strategies	-	Short Straddle (Sell Straddle), Short Strangle (Sell Strangle)
Disadvantage	Unlimited Risk.	• Unlimited potential risk. • Limited profit.
Advantages	Unlimited profit.	• Directional strategy so that there is either no upside or downside risk. • Able to profit even if trader is neutral on the market. • Higher probability of profit.