PROTECTIVE COLLAR	BULL PUT 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 Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

PROTECTIVE COLLAR Vs BULL PUT SPREAD - Details

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

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

	PROTECTIVE COLLAR	BULL PUT 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.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	• Short 1 Call Option, • Long 1 Put Option	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Strike price of short put - net premium paid

PROTECTIVE COLLAR Vs BULL PUT SPREAD - Risk & Reward

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

PROTECTIVE COLLAR Vs BULL PUT SPREAD - Strategy Pros & Cons

	PROTECTIVE COLLAR	BULL PUT SPREAD
Similar Strategies	Bull Put Spread, Bull Call Spread	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• Potential profit is lower or limited.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	The Risk is limited.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.