SHORT CALL LADDER	PROTECTIVE PUT
About Strategy	Short Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

SHORT CALL LADDER Vs PROTECTIVE PUT - Details

	SHORT CALL LADDER	PROTECTIVE PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received	Purchase Price of Underlying + Premium Paid

SHORT CALL LADDER Vs PROTECTIVE PUT - When & How to use ?

	SHORT CALL LADDER	PROTECTIVE PUT
Market View	Neutral	Bullish
When to use?	This strategy is implemented when a trader is moderately bullish on the market, and volatility	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call	Buy 1 ATM Put
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received	Purchase Price of Underlying + Premium Paid

SHORT CALL LADDER Vs PROTECTIVE PUT - Risk & Reward

	SHORT CALL LADDER	PROTECTIVE PUT
Maximum Profit Scenario	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received	Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

SHORT CALL LADDER Vs PROTECTIVE PUT - Strategy Pros & Cons

	SHORT CALL LADDER	PROTECTIVE PUT
Similar Strategies	Short Put Ladder, Strip, Strap	Long Call, Call Backspread
Disadvantage	• Unlimited risk. • Margin required.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.