PROTECTIVE COLLAR	SHORT PUT LADDER
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 Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. Read more..

PROTECTIVE COLLAR Vs SHORT PUT LADDER - Details

	PROTECTIVE COLLAR	SHORT PUT LADDER
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

PROTECTIVE COLLAR Vs SHORT PUT LADDER - When & How to use ?

	PROTECTIVE COLLAR	SHORT PUT LADDER
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.	This strategy is implemented when a trader is slightly bearish on the market.
Action	• Short 1 Call Option, • Long 1 Put Option	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received

PROTECTIVE COLLAR Vs SHORT PUT LADDER - Risk & Reward

	PROTECTIVE COLLAR	SHORT PUT LADDER
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs SHORT PUT LADDER - Strategy Pros & Cons

	PROTECTIVE COLLAR	SHORT PUT LADDER
Similar Strategies	Bull Put Spread, Bull Call Spread	Strap, Strip
Disadvantage	• Potential profit is lower or limited.	• Best to use when you are confident about movement of market. • Small margin required.
Advantages	The Risk is limited.	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.