BEAR CALL SPREAD	PROTECTIVE PUT
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r Read more..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

BEAR CALL SPREAD Vs PROTECTIVE PUT - Details

	BEAR CALL SPREAD	PROTECTIVE PUT
Market View	Bearish	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Purchase Price of Underlying + Premium Paid

BEAR CALL SPREAD Vs PROTECTIVE PUT - When & How to use ?

	BEAR CALL SPREAD	PROTECTIVE PUT
Market View	Bearish	Bullish
When to use?	This strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buy OTM Call Option, Sell ITM Call Option	Buy 1 ATM Put
Breakeven Point	Strike Price of Short Call + Net Premium Received	Purchase Price of Underlying + Premium Paid

BEAR CALL SPREAD Vs PROTECTIVE PUT - Risk & Reward

	BEAR CALL SPREAD	PROTECTIVE PUT
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR CALL SPREAD Vs PROTECTIVE PUT - Strategy Pros & Cons

	BEAR CALL SPREAD	PROTECTIVE PUT
Similar Strategies	Bear Put Spread, Bull Call Spread	Long Call, Call Backspread
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.