PROTECTIVE COLLAR	PUT BACKSPREAD
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..	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..

PROTECTIVE COLLAR Vs PUT BACKSPREAD - Details

	PROTECTIVE COLLAR	PUT BACKSPREAD
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited
Risk Profile	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid

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

	PROTECTIVE COLLAR	PUT BACKSPREAD
Market View	Neutral	Bearish
When to use?	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
Breakeven Point	Purchase Price of Underlying + Net Premium Paid

PROTECTIVE COLLAR Vs PUT BACKSPREAD - Risk & Reward

	PROTECTIVE COLLAR	PUT BACKSPREAD
Maximum Profit Scenario	• 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
Risk	Limited	Limited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs PUT BACKSPREAD - Strategy Pros & Cons

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