Risk Reversal Option Strategy
It is one of such option strategies which is used by traders when they have a highly bullish outlook of the market or stock. In this strategy, the investor goes long on out of the money call option and short on out of the money put option in the same expiration month. A trade setup like this eliminates the risk of the stock trading sideways but does come with substantial risk if the stock trades down. It is to be ensured that both the options must have the same expiry date and are bought/sold in equal quantities.
Created by: Nikita
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