SPYEQUITY
—NO QUOTE
Equities
Futures
% r
% q

Risk Reversal Calculator

How this strategy works →
AssistantPRO
Type a trade in plain English. A fine-tuned model returns the symbol, structure, expiry and size — never a strike or a price.
RECORDED EXAMPLE1/3
“bull call spread on NVDA, 30 days, 2 contracts”
NVDAEQUITYBull Call Spread30d2×
Not a live answer. Captured from api.optionsandfuturescalculator.com on 2026-08-11 and replayed here — the assistant did not run just now. Type your own above and press Parse for a real one.
Trained on ES and NQ futures only — commodity roots are refused, not guessed.A bare futures directive (“Long NQ, 45 days”) often returns no parameters.Exercise style and averaging come from a keyword scan of your words.
Strategy47
Single-leg calls and puts are free
Spreads, straddles, condors, butterflies and futures spreads need Pro. 7 days free, then $9.99/month or $99/year.
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Ticket
Averaging
Debit · 1 × 100—
Position · 0 legs
No legsSelect strikes from the option chain to build a position.
Exercise & Averaging
Exercise
Dividend yield is not modelled on this tree (drift is r − σ²/2). The strategy panel prices with a dividend yield; this panel does not.
Averaging
No resultPick a strike with a live quote to price the tree.
Saved
Nothing saved yetBuild a position, name it, and it will be here next time.
Probability Distribution
No distribution yetThe curve needs a live spot, an implied volatility off the option chain, and a real expiry. Add priced legs to draw it.
P&L matrixprice × date
price–
No grid yetAdd priced legs to compute P&L across price and date.
P&L surfaceprice × date × profit
Surface offTurn on 3D to see the position as a height field.
Option Chain
Outcome
No resultRun a calculation to see outcome, probability and Greeks.

Sell an out-of-the-money put and spend what it pays on an out-of-the-money call. Between the strikes little happens; outside them the position behaves much like a leveraged long. It can often be opened for no net premium, and that apparent cheapness is the thing to understand rather than the thing to like: the call is funded by accepting an obligation to buy shares well below the market, so the downside runs on exactly as a naked short put does. Price both strikes here and look first at the loss below the put strike, which is the number a zero-cost framing quietly hides.

The full Risk Reversal guide, worked example and FAQs →

Two legs, opposite sides of the market, usually quoted and filled as a single combined order the way a vertical is, which avoids being caught short the put with no long call if the market moves between two separate fills. The two strikes are chosen independently, unlike a vertical's shared expiry with linked strikes, so there is no fixed relationship between them beyond both being out of the money. Margin on the short put is calculated the same way a naked short put's margin is, regardless of the long call sitting beside it on the same ticket.

Sizing and account notes

Margin on the short put dominates the account requirement here, calculated the same way a naked short put's margin is regardless of the long call sitting on the same ticket — a broker's margin calculator, not the zero or near-zero net premium, is the number that determines whether the position fits the account. Because it behaves like leveraged stock outside the strikes, many traders size it by the notional exposure it creates above the call strike, not by the small premium it costs to open. A market-wide selloff moves the short put further from the money at the same time margin requirements on it typically rise, which is the scenario this position handles worst.

Common mistake. The common mistake is treating a near-zero net premium as a near-zero risk, when the margin and the downside exposure below the put strike are exactly as large as a naked short put's on their own.

At a glance

Legs
2
Market view
Bullish — leveraged, undefined risk
Opened for
Debit or credit
What bounds the profit
Uncapped above the call strike
What bounds the loss
Large, bounded only by zero

The order ticket, from the worked example

#ActionInstrumentStrike
1SellPut550
2BuyCall610

Payoff at expiry, across a price grid

Computed from the same strikes and net premium as the worked example above — not a simulation, the closed-form payoff evaluated at each price.

SPY at expiryP&L
500-$4980.00
525-$2480.00
550$20.00
580$20.00
610$20.00
640$3020.00

How this compares with related strategies

StrategyMarket viewOpened forLegs vs. this one
CollarNeutral — hedged, boundedDebit or credit+1
Long CallBullish — directionalDebit-1
Long StrangleVolatility — direction-agnosticDebitsame
Bull Call SpreadBullish — moderate, defined rangeDebitsame