Long Combo (Risk Reversal)

bullish2 legs

Also known as: Risk Reversal · Bullish Split-Strike Combo

Buy OTM call + sell OTM put. Bullish for little or no upfront cost.

Payoff shape at expiration (illustrative)

Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.

How it works

Buy an out-of-the-money call, financed by selling an out-of-the-money put. Often costless or a small credit: the market pays you to be bullish, with a neutral zone between the strikes.

When to use it

A conviction bullish trade when put skew is rich — you sell the expensive downside fear to buy the cheap upside. A favorite institutional structure for exactly that reason.

What can go wrong

The short put is full stock-ownership risk below its strike. "Costless" refers to the entry premium, never the risk.

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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.