PROTECTIVE COLLAR	BULL CALL SPREAD
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..	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 COLLAR Vs BULL CALL SPREAD - Details

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

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

	PROTECTIVE COLLAR	BULL CALL SPREAD
Market View	Neutral	Bullish
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 used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.
Action	• Short 1 Call Option, • Long 1 Put Option	Buy ITM Call Option, Sell OTM Call Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Strike price of purchased call + net premium paid

PROTECTIVE COLLAR Vs BULL CALL SPREAD - Risk & Reward

	PROTECTIVE COLLAR	BULL CALL SPREAD
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

PROTECTIVE COLLAR Vs BULL CALL SPREAD - Strategy Pros & Cons

	PROTECTIVE COLLAR	BULL CALL SPREAD
Similar Strategies	Bull Put Spread, Bull Call Spread	Collar
Disadvantage	• Potential profit is lower or limited.	• 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.
Advantages	The Risk is limited.	• 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.