PROTECTIVE CALL	BULL CALL 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..	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. .. Read more..

PROTECTIVE CALL Vs BULL CALL SPREAD - Details

	PROTECTIVE CALL	BULL CALL SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike price of purchased call + net premium paid

PROTECTIVE CALL Vs BULL CALL SPREAD - When & How to use ?

	PROTECTIVE CALL	BULL CALL SPREAD
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	Buy 1 ATM Call	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike price of purchased call + net premium paid

PROTECTIVE CALL Vs BULL CALL SPREAD - Risk & Reward

	PROTECTIVE CALL	BULL CALL SPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs BULL CALL SPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	BULL CALL SPREAD
Similar Strategies	Put Backspread, Long Put	Collar
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.
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.	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.