BULL PUT SPREAD	PROTECTIVE COLLAR
About Strategy	Bull Put Spread Option Strategy Bull Put Spread option trading strategy is used by a trader who is bullish in nature and expects the underlying asset to move in an upward trend in the near future. This strategy includes buying of an ‘Out of the Money’ Put Option and selling of ‘In the Money’ Put Option of the same underlying asset and the same expiration date. When you write a Put, you will receive prem 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..

BULL PUT SPREAD Vs PROTECTIVE COLLAR - Details

	BULL PUT SPREAD	PROTECTIVE COLLAR
Market View	Bullish	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 short put - net premium paid	Purchase Price of Underlying + Net Premium Paid

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

	BULL PUT SPREAD	PROTECTIVE COLLAR
Market View	Bullish	Neutral
When to use?	Bull Put Spread strategy is used when you're of the view that the price of a particular underlying will rise, move sideways, or marginally fall.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy OTM Put Option, Sell ITM Put Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Strike price of short put - net premium paid	Purchase Price of Underlying + Net Premium Paid

BULL PUT SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

	BULL PUT SPREAD	PROTECTIVE COLLAR
Maximum Profit Scenario	Max Profit = Net Premium Received	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Max Loss = (Strike Price Put 1 - Strike Price of Put 2) - Net Premium Received	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

BULL PUT SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	BULL PUT SPREAD	PROTECTIVE COLLAR
Similar Strategies	Bull Call Spread, Bear Put Spread, Collar	Bull Put Spread, Bull Call Spread
Disadvantage	• Limited profit potential. • In loss situations, time decay may go against you.	• Potential profit is lower or limited.
Advantages	• Benefit from the time decay in profit positions but harmful in loss positions. • Profitable when underlying stock price rises, move sideways or marginal drop. • Reduce the downside risk.	The Risk is limited.