LONG PUT LADDER	PROTECTIVE COLLAR
About Strategy	Long Put Ladder Option Strategy  Long Put Ladder can be implemented when a trader is slightly bearish on the market and volatility. It involves buying of an ITM Put Option and sale of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is unlimited and reward is limited. Risk:< 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 PUT LADDER Vs PROTECTIVE COLLAR - Details

	LONG PUT LADDER	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

LONG PUT LADDER Vs PROTECTIVE COLLAR - When & How to use ?

	LONG PUT LADDER	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	This Strategy can be implemented when a trader is slightly bearish on the market and volatility.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy 1 ITM Put, Sell 1 ATM Put, Sell 1 OTM Put	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Long Put - Net Premium Paid, Lower Breakeven Point = Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

LONG PUT LADDER Vs PROTECTIVE COLLAR - Risk & Reward

	LONG PUT LADDER	PROTECTIVE COLLAR
Maximum Profit Scenario	Strike Price of Long Put - Strike Price of Higher Strike Short Put - Net Premium Paid - Commissions Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	When Price of Underlying < Total Strike Prices of Short Puts - Strike Price of Long Put + Net Premium Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Unlimited	Limited
Reward	Limited	Limited

LONG PUT LADDER Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	LONG PUT LADDER	PROTECTIVE COLLAR
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Bull Put Spread, Bull Call Spread
Disadvantage	• Unlimited risk. • Margin required.	• Potential profit is lower or limited.
Advantages	• Reduces capital outlay of bear put spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	The Risk is limited.