BULL CALENDER SPREAD	PROTECTIVE PUT
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 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 CALENDER SPREAD Vs PROTECTIVE PUT - Details

	BULL CALENDER SPREAD	PROTECTIVE PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put 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.	Purchase Price of Underlying + Premium Paid

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

	BULL CALENDER SPREAD	PROTECTIVE PUT
Market View	Bullish	Bullish
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 adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Buy 1 ATM Put
Breakeven Point	Stock Price when long call value is equal to net debit.	Purchase Price of Underlying + Premium Paid

BULL CALENDER SPREAD Vs PROTECTIVE PUT - Risk & Reward

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

BULL CALENDER SPREAD Vs PROTECTIVE PUT - Strategy Pros & Cons

	BULL CALENDER SPREAD	PROTECTIVE PUT
Similar Strategies	The Collar, Bull Put Spread	Long Call, Call Backspread
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.	• 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	• 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.	• 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.