BULL CALL SPREAD	PROTECTIVE PUT
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. Read more..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

BULL CALL SPREAD Vs PROTECTIVE PUT - Details

	BULL CALL SPREAD	PROTECTIVE PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of purchased call + net premium paid	Purchase Price of Underlying + Premium Paid

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

	BULL CALL SPREAD	PROTECTIVE PUT
Market View	Bullish	Bullish
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buy ITM Call Option, Sell OTM Call Option	Buy 1 ATM Put
Breakeven Point	Strike price of purchased call + net premium paid	Purchase Price of Underlying + Premium Paid

BULL CALL SPREAD Vs PROTECTIVE PUT - Risk & Reward

	BULL CALL SPREAD	PROTECTIVE PUT
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL CALL SPREAD Vs PROTECTIVE PUT - Strategy Pros & Cons

	BULL CALL SPREAD	PROTECTIVE PUT
Similar Strategies	Collar	Long Call, Call Backspread
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.