PROTECTIVE COLLAR	MARRIED PUT
About Strategy	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This 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 COLLAR Vs MARRIED PUT - Details

	PROTECTIVE COLLAR	MARRIED PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Purchase Price of Underlying + Premium Paid

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

	PROTECTIVE COLLAR	MARRIED PUT
Market View	Neutral	Bullish
When to use?	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	• Short 1 Call Option, • Long 1 Put Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Purchase Price of Underlying + Premium Paid

PROTECTIVE COLLAR Vs MARRIED PUT - Risk & Reward

	PROTECTIVE COLLAR	MARRIED PUT
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

PROTECTIVE COLLAR Vs MARRIED PUT - Strategy Pros & Cons

	PROTECTIVE COLLAR	MARRIED PUT
Similar Strategies	Bull Put Spread, Bull Call Spread	Long Call
Disadvantage	• Potential profit is lower or limited.	Cost of the put options eats into profit margin.
Advantages	The Risk is limited.	Unlimited Profit and Limited Risk