RISK REVERSAL	LONG STRADDLE
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 Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

RISK REVERSAL Vs LONG STRADDLE - Details

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

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

	RISK REVERSAL	LONG STRADDLE
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 options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buy Call Option, Buy Put Option
Breakeven Point	Premium received - Put Strike Price	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

RISK REVERSAL Vs LONG STRADDLE - Risk & Reward

	RISK REVERSAL	LONG STRADDLE
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Maximum Loss = Net Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs LONG STRADDLE - Strategy Pros & Cons

	RISK REVERSAL	LONG STRADDLE
Similar Strategies	-	Bear Put Spread
Disadvantage	Unlimited Risk.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
Advantages	Unlimited profit.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.