LONG CALL BUTTERFLY	PROTECTIVE COLLAR
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 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..

LONG CALL BUTTERFLY Vs PROTECTIVE COLLAR - Details

	LONG CALL BUTTERFLY	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Purchase Price of Underlying + Net Premium Paid

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

	LONG CALL BUTTERFLY	PROTECTIVE COLLAR
Market View	Neutral	Neutral
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 the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium	Purchase Price of Underlying + Net Premium Paid

LONG CALL BUTTERFLY Vs PROTECTIVE COLLAR - Risk & Reward

	LONG CALL BUTTERFLY	PROTECTIVE COLLAR
Maximum Profit Scenario	Adjacent strikes - Net premium debit.	• 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

LONG CALL BUTTERFLY Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	LONG CALL BUTTERFLY	PROTECTIVE COLLAR
Similar Strategies	-	Bull Put Spread, Bull Call Spread
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.	• Potential profit is lower or limited.
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.	The Risk is limited.