DIAGONAL BULL CALL SPREAD	PROTECTIVE COLLAR
About Strategy	Diagonal Bull Call Spread Option Strategy This strategy is implemented by a trader when he is neutral – moderately bullish in the near-month contract and bullish in the mid-month contract. It involves sale of 1 Near-Month OTM Call Option and buying of 1 Mid Month ITM Call Option. Risk: 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..

DIAGONAL BULL CALL SPREAD Vs PROTECTIVE COLLAR - Details

	DIAGONAL BULL CALL SPREAD	PROTECTIVE COLLAR
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point		Purchase Price of Underlying + Net Premium Paid

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

	DIAGONAL BULL CALL SPREAD	PROTECTIVE COLLAR
Market View	Bullish	Neutral
When to use?		This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point		Purchase Price of Underlying + Net Premium Paid

DIAGONAL BULL CALL SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

	DIAGONAL BULL CALL SPREAD	PROTECTIVE COLLAR
Maximum Profit Scenario		• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario		• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

DIAGONAL BULL CALL SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	DIAGONAL BULL CALL SPREAD	PROTECTIVE COLLAR
Similar Strategies	Bull Put Spread	Bull Put Spread, Bull Call Spread
Disadvantage		• Potential profit is lower or limited.
Advantages		The Risk is limited.