BULL CALL SPREAD	PROTECTIVE COLLAR
About Strategy	Bull Call Spread Option Strategy Bull Call Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to give decent returns in the near future. This strategy includes buying of an ‘In The Money’ Call Option and selling of ‘Deep Out Of the Money’ Call Option of the same underlying asset and the same expiration date. 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 CALL SPREAD Vs PROTECTIVE COLLAR - Details

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

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

	BULL CALL SPREAD	PROTECTIVE COLLAR
Market View	Bullish	Neutral
When to use?	This strategy is used when an investor is Bullish in the market but expect the underlying to gain mildly in near future.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy ITM Call Option, Sell OTM Call Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Strike price of purchased call + net premium paid	Purchase Price of Underlying + Net Premium Paid

BULL CALL SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

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

BULL CALL SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	BULL CALL SPREAD	PROTECTIVE COLLAR
Similar Strategies	Collar	Bull Put Spread, Bull Call Spread
Disadvantage	• Limited profit potential to the higher strike call sold if the underlying stock price rises. • Maximum profit only if stock rises to the higher of 2 strike prices selected.	• Potential profit is lower or limited.
Advantages	• Allows you to reduce risk and cost of your investment. • When placing the spread, exit strategy is pre-determined in advance. • Risk is limited to the net premium paid.	The Risk is limited.