RISK REVERSAL	BEAR 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..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

RISK REVERSAL Vs BEAR PUT SPREAD - Details

	RISK REVERSAL	BEAR PUT SPREAD
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	Strike Price of Long Put - Net Premium

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

	RISK REVERSAL	BEAR PUT SPREAD
Market View	Bullish	Bearish
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.	The bear call spread options strategy is used when you are bearish in market view. 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 ITM Put Option, Sell OTM Put Option
Breakeven Point	Premium received - Put Strike Price	Strike Price of Long Put - Net Premium

RISK REVERSAL Vs BEAR PUT SPREAD - Risk & Reward

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

RISK REVERSAL Vs BEAR PUT SPREAD - Strategy Pros & Cons

	RISK REVERSAL	BEAR PUT SPREAD
Similar Strategies	-	Bear Call Spread, Bull Call Spread
Disadvantage	Unlimited Risk.	• Limited profit. • Early assignment risk.
Advantages	Unlimited profit.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.