PROTECTIVE COLLAR	SHORT 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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

PROTECTIVE COLLAR Vs SHORT CALL - Details

	PROTECTIVE COLLAR	SHORT 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	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Strike Price of Short Call + Premium Received

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

	PROTECTIVE COLLAR	SHORT 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.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	• Short 1 Call Option, • Long 1 Put Option	Sell or Write Call Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Strike Price of Short Call + Premium Received

PROTECTIVE COLLAR Vs SHORT CALL - Risk & Reward

	PROTECTIVE COLLAR	SHORT CALL
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Max Profit = Premium Received
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

PROTECTIVE COLLAR Vs SHORT CALL - Strategy Pros & Cons

	PROTECTIVE COLLAR	SHORT CALL
Similar Strategies	Bull Put Spread, Bull Call Spread	Covered Put, Covered Calls
Disadvantage	• Potential profit is lower or limited.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
Advantages	The Risk is limited.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.