PROTECTIVE COLLAR	IRON CONDORS
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..	Iron Condors Option Strategy Iron Condor is a neutral trading strategy. A trader tries to make profit from low volatility in the price of the underlying asset. This strategy will be better understood if you recall ‘Bull Put Spread’ & ‘Bear Call Spread’. A trader will buy one Deep OTM Put Option and sell one OTM Put Option,. He will also sell one OTM Call Option and buy one Deep OTM Call Option. .. Read more..

PROTECTIVE COLLAR Vs IRON CONDORS - Details

	PROTECTIVE COLLAR	IRON CONDORS
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

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

	PROTECTIVE COLLAR	IRON CONDORS
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.	When a trader tries to make profit from low volatility in the price of the underlying asset.
Action	• Short 1 Call Option, • Long 1 Put Option	Sell 1 OTM Put, Buy 1 OTM Put (Lower Strike), Sell 1 OTM Call, Buy 1 OTM Call (Higher Strike)
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

PROTECTIVE COLLAR Vs IRON CONDORS - Risk & Reward

	PROTECTIVE COLLAR	IRON CONDORS
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Net Premium Received - Commissions Paid
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

PROTECTIVE COLLAR Vs IRON CONDORS - Strategy Pros & Cons

	PROTECTIVE COLLAR	IRON CONDORS
Similar Strategies	Bull Put Spread, Bull Call Spread	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Potential profit is lower or limited.	• Full of risk. • Unlimited maximum loss.
Advantages	The Risk is limited.	• Chance to gather double premium. • Sure, maximum gains on one-half the trade. • Flexible and double leverage at half price.