SHORT PUT	PROTECTIVE CALL
About Strategy	Short Put Option Strategy A trader will short put if he is bullish in nature and expects the underlying asset not to fall below a certain level. Risk: Losses will be potentially unlimited if the stock skyrockets above the strike price of put. 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 PUT Vs PROTECTIVE CALL - Details

	SHORT PUT	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price - Premium	Sale Price of Underlying + Premium Paid

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

	SHORT PUT	PROTECTIVE CALL
Market View	Bullish	Bearish
When to use?	This strategy works well when you're Bullish that the price of the underlying will not fall beyond a certain level.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell Put Option	Buy 1 ATM Call
Breakeven Point	Strike Price - Premium	Sale Price of Underlying + Premium Paid

SHORT PUT Vs PROTECTIVE CALL - Risk & Reward

	SHORT PUT	PROTECTIVE CALL
Maximum Profit Scenario	Premium received in your account when you sell the Put Option.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Unlimited (When the price of the underlying falls.)	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT PUT Vs PROTECTIVE CALL - Strategy Pros & Cons

	SHORT PUT	PROTECTIVE CALL
Similar Strategies	Bull Put Spread, Short Starddle	Put Backspread, Long Put
Disadvantage	• Unlimited risk. • Huge losses if the price of the underlying stock falls steeply.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Benefit from time decay. • Less capital required than buying the stock outright. • Profit when underlying stock price rise, move sideways or drop by a relatively small account.	• 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.