BULL PUT SPREAD	PROTECTIVE CALL
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem 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..

BULL PUT SPREAD Vs PROTECTIVE CALL - Details

	BULL PUT SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike price of short put - net premium paid	Sale Price of Underlying + Premium Paid

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

	BULL PUT SPREAD	PROTECTIVE CALL
Market View	Bullish	Bearish
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy OTM Put Option, Sell ITM Put Option	Buy 1 ATM Call
Breakeven Point	Strike price of short put - net premium paid	Sale Price of Underlying + Premium Paid

BULL PUT SPREAD Vs PROTECTIVE CALL - Risk & Reward

	BULL PUT SPREAD	PROTECTIVE CALL
Maximum Profit Scenario	Max Profit = Net Premium Received	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BULL PUT SPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	BULL PUT SPREAD	PROTECTIVE CALL
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Put Backspread, Long Put
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	• 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.