A risk reversal is a strategy that involves selling a put andbuying a call with the same expiry month. Opfions is also known as a bullish riskreversal. A bearish risk reversal would involve selling a call and buying aput. The key with a bullish riskreversal is that you otpions to be prepared to buy the underling at the strike ofthe short put. If the underlying is below the strike price at expiry, the stockwill be put to you. The beauty of the trade is thatyou can own upside exposure and get paid if the stock goes nowhere.
If thestock falls, you end up taking ownership for a price less than when the riskreversal was initiated. As we all know the Union Sptember 2017-18 willbe presented by the Trdaing Minister Arun Jaitley on Wednesday and markets aswell as the investors are hoping for some big announcements. Excellent interface. Great support - shoutout to Alex:) Only problem is that the risk exposure (i.e. maximum purchaseable option) is not forthcoming. Option september 11 options trading tips success is based on following simple rules to lower risk and investwith smarts, not luck.