RISK REVERSAL	LONG COMBO
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..	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

RISK REVERSAL Vs LONG COMBO - Details

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

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

	RISK REVERSAL	LONG COMBO
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 an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Premium received - Put Strike Price	Call Strike + Net Premium

RISK REVERSAL Vs LONG COMBO - Risk & Reward

	RISK REVERSAL	LONG COMBO
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Underlying asset goes down and Put option exercised
Risk	Unlimited	Unlimited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs LONG COMBO - Strategy Pros & Cons

	RISK REVERSAL	LONG COMBO
Similar Strategies	-	-
Disadvantage	Unlimited Risk.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	Unlimited profit.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.