PROTECTIVE CALL	SHORT 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..	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

PROTECTIVE CALL Vs SHORT STRADDLE - Details

	PROTECTIVE CALL	SHORT 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	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
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 SHORT STRADDLE - When & How to use ?

	PROTECTIVE CALL	SHORT 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 strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Buy 1 ATM Call	Sell Call Option, Sell 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 SHORT STRADDLE - Risk & Reward

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

PROTECTIVE CALL Vs SHORT STRADDLE - Strategy Pros & Cons

	PROTECTIVE CALL	SHORT STRADDLE
Similar Strategies	Put Backspread, Long Put	Short Strangle
Disadvantage	• Profitable when market moves as expected. • Not good for beginners.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
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.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .