PROTECTIVE COLLAR	LONG 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..	Long Put Ladder Option Strategy  Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited. Risk:< .. Read more..

PROTECTIVE COLLAR Vs LONG PUT LADDER - Details

	PROTECTIVE COLLAR	LONG 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	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

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

	PROTECTIVE COLLAR	LONG 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 can be implemented when a trader is slightly bearish on the market and volatility.
Action	• Short 1 Call Option, • Long 1 Put Option	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid

PROTECTIVE COLLAR Vs LONG PUT LADDER - Risk & Reward

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

PROTECTIVE COLLAR Vs LONG PUT LADDER - Strategy Pros & Cons

	PROTECTIVE COLLAR	LONG PUT LADDER
Similar Strategies	Bull Put Spread, Bull Call Spread	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	• Potential profit is lower or limited.	• Unlimited risk. • Margin required.
Advantages	The Risk is limited.	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.