PROTECTIVE COLLAR	LONG COMBO
About Strategy	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 Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received .. Read more..

PROTECTIVE COLLAR Vs LONG COMBO - Details

	PROTECTIVE COLLAR	LONG COMBO
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Call Strike + Net Premium

PROTECTIVE COLLAR Vs LONG COMBO - When & How to use ?

	PROTECTIVE COLLAR	LONG COMBO
Market View	Neutral	Bullish
When to use?	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.
Action	• Short 1 Call Option, • Long 1 Put Option	Sell OTM Put Option, Buy OTM Call Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Call Strike + Net Premium

PROTECTIVE COLLAR Vs LONG COMBO - Risk & Reward

	PROTECTIVE COLLAR	LONG COMBO
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Underlying asset goes up and Call option exercised
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Underlying asset goes down and Put option exercised
Risk	Limited	Unlimited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs LONG COMBO - Strategy Pros & Cons

	PROTECTIVE COLLAR	LONG COMBO
Similar Strategies	Bull Put Spread, Bull Call Spread	-
Disadvantage	• Potential profit is lower or limited.	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.
Advantages	The Risk is limited.	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.