PROTECTIVE COLLAR	SHORT CALL 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 Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..

PROTECTIVE COLLAR Vs SHORT CALL LADDER - Details

	PROTECTIVE COLLAR	SHORT CALL LADDER
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call 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 = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

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

	PROTECTIVE COLLAR	SHORT CALL 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 moderately bullish on the market, and volatility
Action	• Short 1 Call Option, • Long 1 Put Option	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

PROTECTIVE COLLAR Vs SHORT CALL LADDER - Risk & Reward

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

PROTECTIVE COLLAR Vs SHORT CALL LADDER - Strategy Pros & Cons

	PROTECTIVE COLLAR	SHORT CALL LADDER
Similar Strategies	Bull Put Spread, Bull Call Spread	Short Put Ladder, Strip, Strap
Disadvantage	• Potential profit is lower or limited.	• Unlimited risk. • Margin required.
Advantages	The Risk is limited.	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.