THE COLLAR	LONG PUT
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op Read more..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

THE COLLAR Vs LONG PUT - Details

	THE COLLAR	LONG PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price of Long Put - Premium Paid

THE COLLAR Vs LONG PUT - When & How to use ?

	THE COLLAR	LONG PUT
Market View	Bullish	Bearish
When to use?	It should be used only in case where trader is certain about the bearish market view.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Buy Put Option
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price of Long Put - Premium Paid

THE COLLAR Vs LONG PUT - Risk & Reward

	THE COLLAR	LONG PUT
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

THE COLLAR Vs LONG PUT - Strategy Pros & Cons

	THE COLLAR	LONG PUT
Similar Strategies	Call Spread, Bull Put Spread	Protective Call, Short Put
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.