PROTECTIVE COLLAR	LONG CALL
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 Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

PROTECTIVE COLLAR Vs LONG CALL - Details

	PROTECTIVE COLLAR	LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Strike Price + Premium

PROTECTIVE COLLAR Vs LONG CALL - When & How to use ?

	PROTECTIVE COLLAR	LONG CALL
Market View	Neutral	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
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 work when an investor expect the underlying instrument move in upward direction.
Action	• Short 1 Call Option, • Long 1 Put Option	Buying Call option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Strike price + Premium

PROTECTIVE COLLAR Vs LONG CALL - Risk & Reward

	PROTECTIVE COLLAR	LONG CALL
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs LONG CALL - Strategy Pros & Cons

	PROTECTIVE COLLAR	LONG CALL
Similar Strategies	Bull Put Spread, Bull Call Spread	Protective Put
Disadvantage	• Potential profit is lower or limited.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	The Risk is limited.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.