SHORT CALL BUTTERFLY	PROTECTIVE CALL
About Strategy	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the 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 CALL BUTTERFLY Vs PROTECTIVE CALL - Details

	SHORT CALL BUTTERFLY	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	4	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Sale Price of Underlying + Premium Paid

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

	SHORT CALL BUTTERFLY	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This strategy is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call	Buy 1 ATM Call
Breakeven Point	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium	Sale Price of Underlying + Premium Paid

SHORT CALL BUTTERFLY Vs PROTECTIVE CALL - Risk & Reward

	SHORT CALL BUTTERFLY	PROTECTIVE CALL
Maximum Profit Scenario	The profit is limited to the net premium received.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Higher strike price- Lower Strike Price - Net Premium	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

SHORT CALL BUTTERFLY Vs PROTECTIVE CALL - Strategy Pros & Cons

	SHORT CALL BUTTERFLY	PROTECTIVE CALL
Similar Strategies	Long Straddle, Long Call Butterfly	Put Backspread, Long Put
Disadvantage	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.	• 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.