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Risk Reversal Option Strategy
Description

A risk reversal pairs a short out of the money put with a long out of the money call in the same expiration, the put premium paying for some or all of the call. Both legs are priced from bid and ask so the net cost, which can be a credit, is visible before entry.
The short put is an obligation to buy the shares at its strike, and below that strike the position tracks the stock down, so the assignment price and the capital it would take are shown next to the payoff grid.
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Market data in your Excel sheets
1 billion usable data points on stocks, options, ETFs, and fundamentals, with simple Excel formulas.
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