PROTECTIVE COLLAR	SHORT CALL CONDOR SPREAD
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..	Short Call Condor Spread Option Strategy Short Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. Read more..

PROTECTIVE COLLAR Vs SHORT CALL CONDOR SPREAD - Details

	PROTECTIVE COLLAR	SHORT CALL CONDOR SPREAD
Market View	Neutral	Volatile
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium

PROTECTIVE COLLAR Vs SHORT CALL CONDOR SPREAD - When & How to use ?

	PROTECTIVE COLLAR	SHORT CALL CONDOR SPREAD
Market View	Neutral	Volatile
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 is used when an investor expect the price of the underlying stock to be very volatile.
Action	• Short 1 Call Option, • Long 1 Put Option	Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium

PROTECTIVE COLLAR Vs SHORT CALL CONDOR SPREAD - Risk & Reward

	PROTECTIVE COLLAR	SHORT CALL CONDOR SPREAD
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

PROTECTIVE COLLAR Vs SHORT CALL CONDOR SPREAD - Strategy Pros & Cons

	PROTECTIVE COLLAR	SHORT CALL CONDOR SPREAD
Similar Strategies	Bull Put Spread, Bull Call Spread	Short Strangle
Disadvantage	• Potential profit is lower or limited.	• Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
Advantages	The Risk is limited.	• This strategy allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone.