LONG CALL BUTTERFLY	PROTECTIVE CALL
About Strategy	Long Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho 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..

LONG CALL BUTTERFLY Vs PROTECTIVE CALL - Details

	LONG CALL BUTTERFLY	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Sale Price of Underlying + Premium Paid

LONG CALL BUTTERFLY Vs PROTECTIVE CALL - When & How to use ?

	LONG CALL BUTTERFLY	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This strategy should be used when you're expecting no volatility in the price of the underlying.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	Buy 1 ATM Call
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Sale Price of Underlying + Premium Paid

LONG CALL BUTTERFLY Vs PROTECTIVE CALL - Risk & Reward

	LONG CALL BUTTERFLY	PROTECTIVE CALL
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Net Premium Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

LONG CALL BUTTERFLY Vs PROTECTIVE CALL - Strategy Pros & Cons

	LONG CALL BUTTERFLY	PROTECTIVE CALL
Similar Strategies	-	Put Backspread, Long Put
Disadvantage	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.	• 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.