PROTECTIVE CALL	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

PROTECTIVE CALL Vs PUT BACKSPREAD - Details

	PROTECTIVE CALL	PUT BACKSPREAD
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
Risk Profile	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid

PROTECTIVE CALL Vs PUT BACKSPREAD - When & How to use ?

	PROTECTIVE CALL	PUT BACKSPREAD
Market View	Bearish	Bearish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 ATM Call
Breakeven Point	Sale Price of Underlying + Premium Paid

PROTECTIVE CALL Vs PUT BACKSPREAD - Risk & Reward

	PROTECTIVE CALL	PUT BACKSPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs PUT BACKSPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	PUT BACKSPREAD
Similar Strategies	Put Backspread, Long Put
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.
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.