PROTECTIVE COLLAR	PROTECTIVE COLLAR
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..	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..

PROTECTIVE COLLAR Vs PROTECTIVE COLLAR - Details

	PROTECTIVE COLLAR	PROTECTIVE COLLAR
Market View	Neutral	Neutral
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	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

PROTECTIVE COLLAR Vs PROTECTIVE COLLAR - When & How to use ?

	PROTECTIVE COLLAR	PROTECTIVE COLLAR
Market View	Neutral	Neutral
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 implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	• Short 1 Call Option, • Long 1 Put Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

PROTECTIVE COLLAR Vs PROTECTIVE COLLAR - Risk & Reward

	PROTECTIVE COLLAR	PROTECTIVE COLLAR
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

PROTECTIVE COLLAR Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	PROTECTIVE COLLAR	PROTECTIVE COLLAR
Similar Strategies	Bull Put Spread, Bull Call Spread	Bull Put Spread, Bull Call Spread
Disadvantage	• Potential profit is lower or limited.	• Potential profit is lower or limited.
Advantages	The Risk is limited.	The Risk is limited.