SHORT STRADDLE	PROTECTIVE COLLAR
About Strategy	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 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 STRADDLE Vs PROTECTIVE COLLAR - Details

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

SHORT STRADDLE Vs PROTECTIVE COLLAR - When & How to use ?

	SHORT STRADDLE	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	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.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell Call Option, Sell Put Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Purchase Price of Underlying + Net Premium Paid

SHORT STRADDLE Vs PROTECTIVE COLLAR - Risk & Reward

	SHORT STRADDLE	PROTECTIVE COLLAR
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT STRADDLE Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	SHORT STRADDLE	PROTECTIVE COLLAR
Similar Strategies	Short Strangle	Bull Put Spread, Bull Call Spread
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.	• Potential profit is lower or limited.
Advantages	• 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 .	The Risk is limited.