SHORT PUT BUTTERFLY	PROTECTIVE COLLAR
About Strategy	Short Put Butterfly Option Strategy  In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future. A trader will buy 2 ATM Put Options; sell 1 ITM & 1 OTM Put Options. Here risk and returns both are limited. 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..

SHORT PUT BUTTERFLY Vs PROTECTIVE COLLAR - Details

	SHORT PUT BUTTERFLY	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	4	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Purchase Price of Underlying + Net Premium Paid

SHORT PUT BUTTERFLY Vs PROTECTIVE COLLAR - When & How to use ?

	SHORT PUT BUTTERFLY	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	In Short Put Butterfly strategy, a trader is neutral in nature and expects the market to remain range bound in the near future.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell 1 ITM Put, Buy 2 ATM Put, Sell 1 OTM Put	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Highest Strike Short Put - Net Premium Received, Lower Breakeven Point = Strike Price of Lowest Strike Short Put + Net Premium Received	Purchase Price of Underlying + Net Premium Paid

SHORT PUT BUTTERFLY Vs PROTECTIVE COLLAR - Risk & Reward

	SHORT PUT BUTTERFLY	PROTECTIVE COLLAR
Maximum Profit Scenario	Net Premium Received - Commissions Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Strike Price of Higher Strike Short Put - Strike Price of Long Put - Net Premium Received + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

SHORT PUT BUTTERFLY Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	SHORT PUT BUTTERFLY	PROTECTIVE COLLAR
Similar Strategies	Short Condor, Reverse Iron Condor	Bull Put Spread, Bull Call Spread
Disadvantage	• High risk strategy and may cause huge losses if the price of the underlying stocks falls steeply. • Higher profit is only possible when shares get close to expiration.	• Potential profit is lower or limited.
Advantages	• Benefits from time decay. • Traders can earn more in a rising or range bound scenario. • Benefits from a surge in volatility.	The Risk is limited.