PROTECTIVE CALL	BEAR PUT SPREAD
About Strategy	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The Read more..	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM .. Read more..

PROTECTIVE CALL Vs BEAR PUT SPREAD - Details

	PROTECTIVE CALL	BEAR PUT SPREAD
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Long Put - Net Premium

PROTECTIVE CALL Vs BEAR PUT SPREAD - When & How to use ?

	PROTECTIVE CALL	BEAR PUT SPREAD
Market View	Bearish	Bearish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy 1 ATM Call	Buy ITM Put Option, Sell OTM Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Long Put - Net Premium

PROTECTIVE CALL Vs BEAR PUT SPREAD - Risk & Reward

	PROTECTIVE CALL	BEAR PUT SPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Max Loss = Net Premium Paid.
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs BEAR PUT SPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	BEAR PUT SPREAD
Similar Strategies	Put Backspread, Long Put	Bear Call Spread, Bull Call Spread
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Limited profit. • Early assignment risk.
Advantages	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.