PROTECTIVE COLLAR	PROTECTIVE CALL
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 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..

PROTECTIVE COLLAR Vs PROTECTIVE CALL - Details

	PROTECTIVE COLLAR	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Sale Price of Underlying + Premium Paid

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

	PROTECTIVE COLLAR	PROTECTIVE CALL
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.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	• Short 1 Call Option, • Long 1 Put Option	Buy 1 ATM Call
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Sale Price of Underlying + Premium Paid

PROTECTIVE COLLAR Vs PROTECTIVE CALL - Risk & Reward

	PROTECTIVE COLLAR	PROTECTIVE CALL
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs PROTECTIVE CALL - Strategy Pros & Cons

	PROTECTIVE COLLAR	PROTECTIVE CALL
Similar Strategies	Bull Put Spread, Bull Call Spread	Put Backspread, Long Put
Disadvantage	• Potential profit is lower or limited.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	The Risk is limited.	• 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.