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Assuming you are purely interested in trading volatility, you would never run a delta position such as this. I could imagine you would want to sell risk reversals (going long puts, going short calls), when you think the expectation of a crash will become higher, in which case put side volatilities tend to go up, and make the position gain


If you are long TSLA and hedge it with a risk reversal, you have bought a put and sold a call on TSLA with the same expiration and effectively collaring your position. You are limiting your losses at the expense of limiting your gains over the holding period to the expiration of the options. Some traders will put on the risk reversal with a particular ...

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