PROTECTIVE CALL	LONG STRANGLE
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 Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the .. Read more..

PROTECTIVE CALL Vs LONG STRANGLE - Details

	PROTECTIVE CALL	LONG STRANGLE
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 Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

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

	PROTECTIVE CALL	LONG STRANGLE
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 strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Buy 1 ATM Call	Buy OTM Call Option, Buy OTM Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium

PROTECTIVE CALL Vs LONG STRANGLE - Risk & Reward

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

PROTECTIVE CALL Vs LONG STRANGLE - Strategy Pros & Cons

	PROTECTIVE CALL	LONG STRANGLE
Similar Strategies	Put Backspread, Long Put	Long Straddle, Short Strangle
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.
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.	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .