PROTECTIVE CALL	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

PROTECTIVE CALL Vs STRAP - Details

	PROTECTIVE CALL	STRAP
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

PROTECTIVE CALL Vs STRAP - When & How to use ?

	PROTECTIVE CALL	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Buy 1 ATM Call	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Calls/Puts + (Net Premium Paid/2)

PROTECTIVE CALL Vs STRAP - Risk & Reward

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

PROTECTIVE CALL Vs STRAP - Strategy Pros & Cons

	PROTECTIVE CALL	STRAP
Similar Strategies	Put Backspread, Long Put	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.