RISK REVERSAL	BULL CALENDER 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..	Bull Calendar Spread Option Strategy This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof .. Read more..

RISK REVERSAL Vs BULL CALENDER SPREAD - Details

	RISK REVERSAL	BULL CALENDER SPREAD
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	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Stock Price when long call value is equal to net debit.

RISK REVERSAL Vs BULL CALENDER SPREAD - When & How to use ?

	RISK REVERSAL	BULL CALENDER SPREAD
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 a trader wants to make profit from a steady increase in the stock price over a short period of time.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Premium received - Put Strike Price	Stock Price when long call value is equal to net debit.

RISK REVERSAL Vs BULL CALENDER SPREAD - Risk & Reward

	RISK REVERSAL	BULL CALENDER SPREAD
Maximum Profit Scenario	You have unlimited profit potential to the upside.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	RISK REVERSAL	BULL CALENDER SPREAD
Similar Strategies	-	The Collar, Bull Put Spread
Disadvantage	Unlimited Risk.	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.
Advantages	Unlimited profit.	• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.