PROTECTIVE CALL	SHORT 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..	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. Read more..

PROTECTIVE CALL Vs SHORT PUT - Details

	PROTECTIVE CALL	SHORT 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	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price - Premium

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

	PROTECTIVE CALL	SHORT 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 works well when you're Bullish that the price of the underlying will not fall beyond a certain level.
Action	Buy 1 ATM Call	Sell Put Option
Breakeven Point	Sale Price of Underlying + Premium Paid	Strike Price - Premium

PROTECTIVE CALL Vs SHORT PUT - Risk & Reward

	PROTECTIVE CALL	SHORT PUT
Maximum Profit Scenario	Sale Price of Underlying - Price of Underlying - Premium Paid	Premium received in your account when you sell the Put Option.
Maximum Loss Scenario	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid	Unlimited (When the price of the underlying falls.)
Risk	Limited	Unlimited
Reward	Unlimited	Limited

PROTECTIVE CALL Vs SHORT PUT - Strategy Pros & Cons

	PROTECTIVE CALL	SHORT PUT
Similar Strategies	Put Backspread, Long Put	Bull Put Spread, Short Starddle
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.
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.	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.