PROTECTIVE COLLAR	BULL CALENDER SPREAD
About Strategy	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This Read more..	Bull Calendar Spread Option Strategy This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof .. Read more..

PROTECTIVE COLLAR Vs BULL CALENDER SPREAD - Details

	PROTECTIVE COLLAR	BULL CALENDER SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Stock Price when long call value is equal to net debit.

PROTECTIVE COLLAR Vs BULL CALENDER SPREAD - When & How to use ?

	PROTECTIVE COLLAR	BULL CALENDER SPREAD
Market View	Neutral	Bullish
When to use?	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.	This strategy is used when a trader wants to make profit from a steady increase in the stock price over a short period of time.
Action	• Short 1 Call Option, • Long 1 Put Option	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Stock Price when long call value is equal to net debit.

PROTECTIVE COLLAR Vs BULL CALENDER SPREAD - Risk & Reward

	PROTECTIVE COLLAR	BULL CALENDER SPREAD
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	You have unlimited profit potential to the upside.
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	PROTECTIVE COLLAR	BULL CALENDER SPREAD
Similar Strategies	Bull Put Spread, Bull Call Spread	The Collar, Bull Put Spread
Disadvantage	• Potential profit is lower or limited.	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.
Advantages	The Risk is limited.	• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.