PROTECTIVE CALL	LONG CALL
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..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

PROTECTIVE CALL Vs LONG CALL - Details

	PROTECTIVE CALL	LONG CALL
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price + Premium

PROTECTIVE CALL Vs LONG CALL - When & How to use ?

	PROTECTIVE CALL	LONG CALL
Market View	Bearish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy 1 ATM Call	Buying Call option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike price + Premium

PROTECTIVE CALL Vs LONG CALL - Risk & Reward

	PROTECTIVE CALL	LONG CALL
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs LONG CALL - Strategy Pros & Cons

	PROTECTIVE CALL	LONG CALL
Similar Strategies	Put Backspread, Long Put	Protective Put
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
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.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.