: Risk Reversal - Options Math for Traders details how this variation exploits "skew" (the price difference between puts and calls) to potentially enter trades for a net credit. Strategic Overview Synthetic Long Stock (Same Strike) :
: You have unlimited upside but also face "uncapped" downside risk identical to owning the stock. Risk Reversal (Different Strikes) : sell put and buy call strategy
: Often established for a net credit or zero cost, as the put premium sold typically covers the call premium bought. : Risk Reversal - Options Math for Traders