STRIP	PROTECTIVE COLLAR
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of the 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..

STRIP Vs PROTECTIVE COLLAR - Details

	STRIP	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Purchase Price of Underlying + Net Premium Paid

STRIP Vs PROTECTIVE COLLAR - When & How to use ?

	STRIP	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Purchase Price of Underlying + Net Premium Paid

STRIP Vs PROTECTIVE COLLAR - Risk & Reward

	STRIP	PROTECTIVE COLLAR
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Unlimited	Limited

STRIP Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	STRIP	PROTECTIVE COLLAR
Similar Strategies	Strap, Short Put Ladder	Bull Put Spread, Bull Call Spread
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• Potential profit is lower or limited.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	The Risk is limited.