PROTECTIVE CALL	SHORT CALL
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..	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy .. Read more..

PROTECTIVE CALL Vs SHORT CALL - Details

	PROTECTIVE CALL	SHORT CALL
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Short Call + Premium Received

PROTECTIVE CALL Vs SHORT CALL - When & How to use ?

	PROTECTIVE CALL	SHORT CALL
Market View	Bearish	Bearish
When to use?	This strategy is implemented when a trader is bearish on the market and expects to go down.	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.
Action	Buy 1 ATM Call	Sell or Write Call Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price of Short Call + Premium Received

PROTECTIVE CALL Vs SHORT CALL - Risk & Reward

	PROTECTIVE CALL	SHORT CALL
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Max Profit = Premium Received
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs SHORT CALL - Strategy Pros & Cons

	PROTECTIVE CALL	SHORT CALL
Similar Strategies	Put Backspread, Long Put	Covered Put, Covered Calls
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.
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.	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.