Bullish Long Seagull Spread

This option trading strategy is a long combo (long risk reversal) hedged against the stock price falling by buying an OTM put option. It amounts to a long position in an OTM put option with a strike price K1 , a short position in an ATM put option with a strike price K2 , and a long position in an OTM call option with a strike price K3 . Ideally, the trade should be structured to have zero cost. The trader’s outlook is bullish. This is a capital gain strategy.