SHORT STRANGLE	PROTECTIVE CALL
About Strategy	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if 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 STRANGLE Vs PROTECTIVE CALL - Details

	SHORT STRANGLE	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	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Sale Price of Underlying + Premium Paid

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

	SHORT STRANGLE	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell OTM Call, Sell OTM Put	Buy 1 ATM Call
Breakeven Point	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium	Sale Price of Underlying + Premium Paid

SHORT STRANGLE Vs PROTECTIVE CALL - Risk & Reward

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

SHORT STRANGLE Vs PROTECTIVE CALL - Strategy Pros & Cons

	SHORT STRANGLE	PROTECTIVE CALL
Similar Strategies	Short Straddle, Long Strangle	Put Backspread, Long Put
Disadvantage	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.	• 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.