SHORT GUTS	PROTECTIVE CALL
About Strategy	Short Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < 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 GUTS Vs PROTECTIVE CALL - Details

	SHORT GUTS	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	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Sale Price of Underlying + Premium Paid

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

	SHORT GUTS	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell 1 ITM Call, Sell 1 ITM Put	Buy 1 ATM Call
Breakeven Point	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Sale Price of Underlying + Premium Paid

SHORT GUTS Vs PROTECTIVE CALL - Risk & Reward

	SHORT GUTS	PROTECTIVE CALL
Maximum Profit Scenario	Net Premium Received + Strike Price of Short Put - Strike Price of Short Call - Commissions Paid	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Price of Underlying - Strike Price of Short Call - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT GUTS Vs PROTECTIVE CALL - Strategy Pros & Cons

	SHORT GUTS	PROTECTIVE CALL
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Put Backspread, Long Put
Disadvantage	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.	• 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.