SHORT CALL BUTTERFLY	PROTECTIVE COLLAR
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between 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..

SHORT CALL BUTTERFLY Vs PROTECTIVE COLLAR - Details

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

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

	SHORT CALL BUTTERFLY	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Purchase Price of Underlying + Net Premium Paid

SHORT CALL BUTTERFLY Vs PROTECTIVE COLLAR - Risk & Reward

	SHORT CALL BUTTERFLY	PROTECTIVE COLLAR
Maximum Profit Scenario	The profit is limited to the net premium received.	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

SHORT CALL BUTTERFLY Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	PROTECTIVE COLLAR
Similar Strategies	Long Straddle, Long Call Butterfly	Bull Put Spread, Bull Call Spread
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Potential profit is lower or limited.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	The Risk is limited.