LONG STRADDLE	PROTECTIVE CALL
About Strategy	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc Read more..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

LONG STRADDLE Vs PROTECTIVE CALL - Details

	LONG STRADDLE	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Sale Price of Underlying + Premium Paid

LONG STRADDLE Vs PROTECTIVE CALL - When & How to use ?

	LONG STRADDLE	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy Call Option, Buy Put Option	Buy 1 ATM Call
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium	Sale Price of Underlying + Premium Paid

LONG STRADDLE Vs PROTECTIVE CALL - Risk & Reward

	LONG STRADDLE	PROTECTIVE CALL
Maximum Profit Scenario	Max profit is achieved when at one option is exercised.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Maximum Loss = Net Premium Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRADDLE Vs PROTECTIVE CALL - Strategy Pros & Cons

	LONG STRADDLE	PROTECTIVE CALL
Similar Strategies	Bear Put Spread	Put Backspread, Long Put
Disadvantage	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Unlimited potential beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.