PROTECTIVE CALL	BULL PUT SPREAD
About Strategy	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 Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem .. Read more..

PROTECTIVE CALL Vs BULL PUT SPREAD - Details

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

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

	PROTECTIVE CALL	BULL PUT SPREAD
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.
Action	Buy 1 ATM Call	Buy OTM Put Option, Sell ITM Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike price of short put - net premium paid

PROTECTIVE CALL Vs BULL PUT SPREAD - Risk & Reward

	PROTECTIVE CALL	BULL PUT SPREAD
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Max Profit = Net Premium Received
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs BULL PUT SPREAD - Strategy Pros & Cons

	PROTECTIVE CALL	BULL PUT SPREAD
Similar Strategies	Put Backspread, Long Put	Bull Call Spread, Bear Put Spread, Collar
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Limited profit potential. • In loss situations, time decay may go against you.
Advantages	• 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.	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.