PROTECTIVE CALL	LONG PUT
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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

PROTECTIVE CALL Vs LONG PUT - Details

	PROTECTIVE CALL	LONG PUT
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	1	1
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Long Put - Premium Paid

PROTECTIVE CALL Vs LONG PUT - When & How to use ?

	PROTECTIVE CALL	LONG PUT
Market View	Bearish	Bearish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Buy 1 ATM Call	Buy Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Long Put - Premium Paid

PROTECTIVE CALL Vs LONG PUT - Risk & Reward

	PROTECTIVE CALL	LONG PUT
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs LONG PUT - Strategy Pros & Cons

	PROTECTIVE CALL	LONG PUT
Similar Strategies	Put Backspread, Long Put	Protective Call, Short Put
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
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.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.