LONG COMBO	PROTECTIVE COLLAR
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received 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 COMBO Vs PROTECTIVE COLLAR - Details

	LONG COMBO	PROTECTIVE COLLAR
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Call Strike + Net Premium	Purchase Price of Underlying + Net Premium Paid

LONG COMBO Vs PROTECTIVE COLLAR - When & How to use ?

	LONG COMBO	PROTECTIVE COLLAR
Market View	Bullish	Neutral
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell OTM Put Option, Buy OTM Call Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Call Strike + Net Premium	Purchase Price of Underlying + Net Premium Paid

LONG COMBO Vs PROTECTIVE COLLAR - Risk & Reward

	LONG COMBO	PROTECTIVE COLLAR
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Unlimited	Limited
Reward	Unlimited	Limited

LONG COMBO Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	LONG COMBO	PROTECTIVE COLLAR
Similar Strategies	-	Bull Put Spread, Bull Call Spread
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Potential profit is lower or limited.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.	The Risk is limited.