RISK REVERSAL	LONG CALL
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 Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

RISK REVERSAL Vs LONG CALL - Details

	RISK REVERSAL	LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginner Level
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Strike Price + Premium

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

	RISK REVERSAL	LONG CALL
Market View	Bullish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
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 work when an investor expect the underlying instrument move in upward direction.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Buying Call option
Breakeven Point	Premium received - Put Strike Price	Strike price + Premium

RISK REVERSAL Vs LONG CALL - Risk & Reward

	RISK REVERSAL	LONG CALL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	Premium Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

RISK REVERSAL Vs LONG CALL - Strategy Pros & Cons

	RISK REVERSAL	LONG CALL
Similar Strategies	-	Protective Put
Disadvantage	Unlimited Risk.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	Unlimited profit.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.