BULL CALL SPREAD	PROTECTIVE CALL
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 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..

BULL CALL SPREAD Vs PROTECTIVE CALL - Details

	BULL CALL SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of purchased call + net premium paid	Sale Price of Underlying + Premium Paid

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

	BULL CALL SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
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 a trader is bearish on the market and expects to go down.
Action	Buy ITM Call Option, Sell OTM Call Option	Buy 1 ATM Call
Breakeven Point	Strike price of purchased call + net premium paid	Sale Price of Underlying + Premium Paid

BULL CALL SPREAD Vs PROTECTIVE CALL - Risk & Reward

	BULL CALL SPREAD	PROTECTIVE CALL
Maximum Profit Scenario	(Strike Price of Call 1 - Strike Price of Call 2) - Net Premium Paid	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

BULL CALL SPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	BULL CALL SPREAD	PROTECTIVE CALL
Similar Strategies	Collar	Put Backspread, Long Put
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.	• Profitable when market moves as expected. • Not good for beginners.
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.	• 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.