PUT BACKSPREAD	PROTECTIVE CALL
About Strategy	Put Backspread Option Strategy If the trader is bearish on market and bullish in volatility, he will implement this strategy. However the trader can be neutral in nature i.e. indifferent if the market moves in either of the direction, this strategy will make profits, but uptrend will give a capped income than downtrend which will give unlimited returns. Read more..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

PUT BACKSPREAD Vs PROTECTIVE CALL - Details

	PUT BACKSPREAD	PROTECTIVE CALL
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile		Unlimited
Risk Profile		Limited
Breakeven Point		Sale Price of Underlying + Premium Paid

PUT BACKSPREAD Vs PROTECTIVE CALL - When & How to use ?

	PUT BACKSPREAD	PROTECTIVE CALL
Market View	Bearish	Bearish
When to use?		This strategy is implemented when a trader is bearish on the market and expects to go down.
Action		Buy 1 ATM Call
Breakeven Point		Sale Price of Underlying + Premium Paid

PUT BACKSPREAD Vs PROTECTIVE CALL - Risk & Reward

	PUT BACKSPREAD	PROTECTIVE CALL
Maximum Profit Scenario		Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario		Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PUT BACKSPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	PUT BACKSPREAD	PROTECTIVE CALL
Similar Strategies		Put Backspread, Long Put
Disadvantage		• Profitable when market moves as expected. • Not good for beginners.
Advantages		• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.