SHORT CALL	PROTECTIVE CALL
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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..

SHORT CALL Vs PROTECTIVE CALL - Details

	SHORT CALL	PROTECTIVE CALL
Market View	Bearish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	Sale Price of Underlying + Premium Paid

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

	SHORT CALL	PROTECTIVE CALL
Market View	Bearish	Bearish
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell or Write Call Option	Buy 1 ATM Call
Breakeven Point	Strike Price of Short Call + Premium Received	Sale Price of Underlying + Premium Paid

SHORT CALL Vs PROTECTIVE CALL - Risk & Reward

	SHORT CALL	PROTECTIVE CALL
Maximum Profit Scenario	Max Profit = Premium Received	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT CALL Vs PROTECTIVE CALL - Strategy Pros & Cons

	SHORT CALL	PROTECTIVE CALL
Similar Strategies	Covered Put, Covered Calls	Put Backspread, Long Put
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• 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.