Risk Reversal Calculator
Buy an OTM call and sell an OTM put (bullish risk reversal) to see the net cost and key expiry levels.
Results
Fill in the inputs and click Calculate.
- Net Cost (+debit / −credit)
- –
- Upper Breakeven
- –
- Lower Breakeven (credits only)
- –
Risk disclaimer
The sold OTM put carries open-ended downside risk in a crash — size margin and risk accordingly.
What is a risk reversal?
Upside comes from the bought call; downside is borne by the sold put — not advice, like every options page here.
Net cost = call premium − put premium: it can be a debit or a credit.
Note: a naked short put has no floor if the market collapses far below its strike.
How to use
- Enter both strikes and premiums (call strike above put strike is typical).
- Click Calculate for the net cost and breakeven levels.
Formula
- Net cost = call premium − put premium
- Upper BE = call strike + net cost (when a debit)
- Lower BE = put strike + net cost (when a credit)
Example
Buy call 110 @6, sell put 90 @4 → net debit 2, upper BE 112; no lower BE on a debit — downside is open-ended.
Margin for the short leg is not shown here.
FAQ
Can it be bearish?
Yes — buying a put and selling a call is a bearish reversal; this page computes the bullish version.