PROTECTIVE CALL	SHORT STRANGLE
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 Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

PROTECTIVE CALL Vs SHORT STRANGLE - Details

	PROTECTIVE CALL	SHORT STRANGLE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Sale Price of Underlying + Premium Paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

PROTECTIVE CALL Vs SHORT STRANGLE - When & How to use ?

	PROTECTIVE CALL	SHORT STRANGLE
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 perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Buy 1 ATM Call	Sell OTM Call, Sell OTM Put
Breakeven Point	Sale Price of Underlying + Premium Paid	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

PROTECTIVE CALL Vs SHORT STRANGLE - Risk & Reward

	PROTECTIVE CALL	SHORT STRANGLE
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Maximum Profit = Net Premium Received
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs SHORT STRANGLE - Strategy Pros & Cons

	PROTECTIVE CALL	SHORT STRANGLE
Similar Strategies	Put Backspread, Long Put	Short Straddle, Long Strangle
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.