PROTECTIVE CALL	MARRIED 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..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

PROTECTIVE CALL Vs MARRIED PUT - Details

	PROTECTIVE CALL	MARRIED PUT
Market View	Bearish	Bullish
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	Purchase Price of Underlying + Premium Paid

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

	PROTECTIVE CALL	MARRIED PUT
Market View	Bearish	Bullish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Buy 1 ATM Call	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Purchase Price of Underlying + Premium Paid

PROTECTIVE CALL Vs MARRIED PUT - Risk & Reward

	PROTECTIVE CALL	MARRIED PUT
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Profit = Price of Underlying - Purchase Price of Underlying - 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 MARRIED PUT - Strategy Pros & Cons

	PROTECTIVE CALL	MARRIED PUT
Similar Strategies	Put Backspread, Long Put	Long Call
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	Cost of the put options eats into profit margin.
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 Profit and Limited Risk