BEAR PUT SPREAD	PROTECTIVE COLLAR
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM 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..

BEAR PUT SPREAD Vs PROTECTIVE COLLAR - Details

	BEAR PUT SPREAD	PROTECTIVE COLLAR
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Purchase Price of Underlying + Net Premium Paid

BEAR PUT SPREAD Vs PROTECTIVE COLLAR - When & How to use ?

	BEAR PUT SPREAD	PROTECTIVE COLLAR
Market View	Bearish	Neutral
When to use?	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy ITM Put Option, Sell OTM Put Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Strike Price of Long Put - Net Premium	Purchase Price of Underlying + Net Premium Paid

BEAR PUT SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

	BEAR PUT SPREAD	PROTECTIVE COLLAR
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Max Loss = Net Premium Paid.	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

BEAR PUT SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	BEAR PUT SPREAD	PROTECTIVE COLLAR
Similar Strategies	Bear Call Spread, Bull Call Spread	Bull Put Spread, Bull Call Spread
Disadvantage	• Limited profit. • Early assignment risk.	• Potential profit is lower or limited.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	The Risk is limited.