PROTECTIVE CALL	SHORT PUT LADDER
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..	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

PROTECTIVE CALL Vs SHORT PUT LADDER - Details

	PROTECTIVE CALL	SHORT PUT LADDER
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

PROTECTIVE CALL Vs SHORT PUT LADDER - When & How to use ?

	PROTECTIVE CALL	SHORT PUT LADDER
Market View	Bearish	Neutral
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This strategy is implemented when a trader is slightly bearish on the market.
Action	Buy 1 ATM Call	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Sale Price of Underlying + Premium Paid	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

PROTECTIVE CALL Vs SHORT PUT LADDER - Risk & Reward

	PROTECTIVE CALL	SHORT PUT LADDER
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs SHORT PUT LADDER - Strategy Pros & Cons

	PROTECTIVE CALL	SHORT PUT LADDER
Similar Strategies	Put Backspread, Long Put	Strap, Strip
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Best to use when you are confident about movement of market. • Small margin required.
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.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.