BULL CALENDER SPREAD	PROTECTIVE CALL
About Strategy	Bull Calendar Spread Option Strategy This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof 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..

BULL CALENDER SPREAD Vs PROTECTIVE CALL - Details

	BULL CALENDER SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Stock Price when long call value is equal to net debit.	Sale Price of Underlying + Premium Paid

BULL CALENDER SPREAD Vs PROTECTIVE CALL - When & How to use ?

	BULL CALENDER SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
When to use?	This strategy is used when a trader wants to make profit from a steady increase in the stock price over a short period of time.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Buy 1 ATM Call
Breakeven Point	Stock Price when long call value is equal to net debit.	Sale Price of Underlying + Premium Paid

BULL CALENDER SPREAD Vs PROTECTIVE CALL - Risk & Reward

	BULL CALENDER SPREAD	PROTECTIVE CALL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

BULL CALENDER SPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	BULL CALENDER SPREAD	PROTECTIVE CALL
Similar Strategies	The Collar, Bull Put Spread	Put Backspread, Long Put
Disadvantage	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.	• 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.