An indicator of the volatility difference between a call option and a put option. Risk reversal is used because it is more helpful in this situation to see the volatility rather than the price. A high risk reversal indicates that the call option is more volatile than the put option, and the opposite is true for a low risk reversal. This information is used by investors to get a reading on the markets, and to help them decide how to invest.
Related information about risk reversal:
- RISK REVERSAL.com with Dan Nathan of CNBC's Options Action ...
19 hours ago ... Risk Reversal .... Quick Hits: Live Commentary. LOGIN OR REGISTER TO ACCESS QUICK HITS. Tweets by @RiskReversal ...
- Risk reversal - Wikipedia, the free encyclopedia
Risk reversal can refer to a measure of the vol-skew or to an investment strategy. Contents. 1 Risk Reversal investment strategy; 2 Risk reversal (measure of ...
- Risk Reversal Definition | Investopedia
1. In commodities trading, it is a hedge strategy that consists of selling a call and buying a put option. This strategy protects against unfavorable, downward price ...
- Risk Reversal by OptionTradingpedia.com
Learn everything about the Risk Reversal options trading strategy as well as its advantages and disadvantages now with examples and pictures.
- Risk Reversal (RiskReversal) on Twitter
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- Risk Reversal or Synthetic Long Financial Derivative
Nov 24, 2009 ... This artcicle discusses the Risk Reversal or Synthetic Long Strategy. This is a financial derivative strategy where an investor will simultaneously ...
- Risk Reversal - Financial Glossary
An option strategy involving the purchase of a put option and the sale of a call option. It offers protection against a fall in prices but limits the profits to be made ...
- Option Strategy: Risk-Reversal | Options | Minyanville's Wall Street
Oct 2, 2012 ... This strategy has low cost and limited risk with big profit potential.