Risk Reversal
Computes the net premium of a risk reversal: buying a higher-strike call and selling a lower-strike put, building a synthetic long position in the asset. Depending on the premium gap, the structure comes out as a debit (you pay) or a credit (you receive) — and when the two cancel, it becomes the classic zero-cost reversal. In FX, it also gauges the slope of the volatility smile. Enter the put and call strikes and the two premiums.
Resultado
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Risk Reversal
Computes the net premium of a risk reversal: buying a higher-strike call and selling a lower-strike put, building a synthetic long position in the asset. Depending on the premium gap, the structure comes out as a debit (you pay) or a credit (you receive) — and when the two cancel, it becomes the classic zero-cost reversal. In FX, it also gauges the slope of the volatility smile. Enter the put and call strikes and the two premiums.
Going long without buying the stock
The risk reversal builds a position much like being long the asset, but with options only. You buy a call above the price and sell a put below, funding one leg with the other. The effect is directional and bullish: you gain if the asset rises, lose if it falls, almost as if you held the stock itself.
The number that matters is the net premium. If the call you buy costs more than the put you sell, it comes out as a debit; if it's the other way round, you receive a credit to set up the bullish bet. When the two balance, you get the famous zero-cost reversal. In the FX market, the risk reversal is quoted in volatility and works as a gauge of the volatility smile, showing whether the market pays more for upside or downside protection.
Enter the put and call strikes and the two premiums. The tool returns the net premium and indicates whether it's a debit or a credit. Remember that, because there's a sold put, the downside risk is real and considerable: below the put strike, losses grow like those of a long position.
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The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.