LONG CALL LADDER	PROTECTIVE COLLAR
About Strategy	Long Call Ladder Option Strategy  Long Call Ladder Strategy is an extension to Bull Call Spread Strategy. A trader will be slightly bullish about the market, in this strategy but bearish over volatility. It involves buying of an ITM Call Option and sale of 1 ATM & 1 OTM Call Options. However, the risk associated with this strategy is unlimited and reward is limited. 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..

LONG CALL LADDER Vs PROTECTIVE COLLAR - Details

	LONG CALL LADDER	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Short Calls - Strike Price of Long Call - Net Premium Paid, Lower Breakeven Point = Strike Price of Long Call + Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

LONG CALL LADDER Vs PROTECTIVE COLLAR - When & How to use ?

	LONG CALL LADDER	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	This Strategy is an extension to Bull Call Spread Strategy. A trader will be slightly bullish about the market, in this strategy but bearish over volatility.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Short Calls - Strike Price of Long Call - Net Premium Paid, Lower Breakeven Point = Strike Price of Long Call + Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

LONG CALL LADDER Vs PROTECTIVE COLLAR - Risk & Reward

	LONG CALL LADDER	PROTECTIVE COLLAR
Maximum Profit Scenario	Strike Price of Lower Strike Short Call - Strike Price of Long Call - Net Premium Paid - Commissions Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Price of Underlying - Upper Breakeven Price + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Unlimited	Limited
Reward	Unlimited	Limited

LONG CALL LADDER Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	LONG CALL LADDER	PROTECTIVE COLLAR
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Bull Put Spread, Bull Call Spread
Disadvantage	• Unlimited risk. • Margin required.	• Potential profit is lower or limited.
Advantages	• Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	The Risk is limited.