BULL CALENDER SPREAD	PROTECTIVE COLLAR
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 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 CALENDER SPREAD Vs PROTECTIVE COLLAR - Details

	BULL CALENDER SPREAD	PROTECTIVE COLLAR
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Stock Price when long call value is equal to net debit.	Purchase Price of Underlying + Net Premium Paid

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

	BULL CALENDER SPREAD	PROTECTIVE COLLAR
Market View	Bullish	Neutral
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 implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Stock Price when long call value is equal to net debit.	Purchase Price of Underlying + Net Premium Paid

BULL CALENDER SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

	BULL CALENDER SPREAD	PROTECTIVE COLLAR
Maximum Profit Scenario	You have unlimited profit potential to the upside.	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Unlimited	Limited

BULL CALENDER SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

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