IRON CONDORS	PROTECTIVE PUT
About Strategy	Iron Condors Option Strategy Iron Condor is a neutral trading strategy. A trader tries to make profit from low volatility in the price of the underlying asset. This strategy will be better understood if you recall ‘Bull Put Spread’ & ‘Bear Call Spread’. A trader will buy one Deep OTM Put Option and sell one OTM Put Option,. He will also sell one OTM Call Option and buy one Deep OTM Call Option. Read more..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

IRON CONDORS Vs PROTECTIVE PUT - Details

	IRON CONDORS	PROTECTIVE PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Purchase Price of Underlying + Premium Paid

IRON CONDORS Vs PROTECTIVE PUT - When & How to use ?

	IRON CONDORS	PROTECTIVE PUT
Market View	Neutral	Bullish
When to use?	When a trader tries to make profit from low volatility in the price of the underlying asset.	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Sell 1 OTM Put, Buy 1 OTM Put (Lower Strike), Sell 1 OTM Call, Buy 1 OTM Call (Higher Strike)	Buy 1 ATM Put
Breakeven Point	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received	Purchase Price of Underlying + Premium Paid

IRON CONDORS Vs PROTECTIVE PUT - Risk & Reward

	IRON CONDORS	PROTECTIVE PUT
Maximum Profit Scenario	Net Premium Received - Commissions Paid	Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

IRON CONDORS Vs PROTECTIVE PUT - Strategy Pros & Cons

	IRON CONDORS	PROTECTIVE PUT
Similar Strategies	Long Put Butterfly, Neutral Calendar Spread	Long Call, Call Backspread
Disadvantage	• Full of risk. • Unlimited maximum loss.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• Chance to gather double premium. • Sure, maximum gains on one-half the trade. • Flexible and double leverage at half price.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.