PROTECTIVE CALL	LONG STRADDLE
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 Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

PROTECTIVE CALL Vs LONG STRADDLE - Details

	PROTECTIVE CALL	LONG STRADDLE
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Sale Price of Underlying + Premium Paid	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	PROTECTIVE CALL	LONG STRADDLE
Market View	Bearish	Neutral
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Buy 1 ATM Call	Buy Call Option, Buy Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

PROTECTIVE CALL Vs LONG STRADDLE - Risk & Reward

	PROTECTIVE CALL	LONG STRADDLE
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE CALL Vs LONG STRADDLE - Strategy Pros & Cons

	PROTECTIVE CALL	LONG STRADDLE
Similar Strategies	Put Backspread, Long Put	Bear Put Spread
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
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.	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.