STRIP	PROTECTIVE CALL
About Strategy	Strip Option Strategy Strip Strategy is the opposite of Strap Strategy. When a trader is bearish on the market and bullish on volatility then he will implement this strategy by buying two ATM Put Options & one ATM Call Option, of the same strike price, expiry date & underlying asset. If the prices move downwards then this strategy will make more profits compared to short straddle because of 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..

STRIP Vs PROTECTIVE CALL - Details

	STRIP	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	1
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Sale Price of Underlying + Premium Paid

STRIP Vs PROTECTIVE CALL - When & How to use ?

	STRIP	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	When a trader is bearish on the market and bullish on volatility then he will implement this strategy.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy 1 ATM Call, Buy 2 ATM Puts	Buy 1 ATM Call
Breakeven Point	Upper Breakeven Point = Strike Price of Calls/Puts + Net Premium Paid, Lower Breakeven Point = Strike Price of Calls/Puts - (Net Premium Paid/2)	Sale Price of Underlying + Premium Paid

STRIP Vs PROTECTIVE CALL - Risk & Reward

	STRIP	PROTECTIVE CALL
Maximum Profit Scenario	Price of Underlying - Strike Price of Calls - Net Premium Paid OR 2 x (Strike Price of Puts - Price of Underlying) - Net Premium Paid	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Net Premium Paid + Commissions Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRIP Vs PROTECTIVE CALL - Strategy Pros & Cons

	STRIP	PROTECTIVE CALL
Similar Strategies	Strap, Short Put Ladder	Put Backspread, Long Put
Disadvantage	Expensive., The share price must change significantly to generate profit., High Bid/Offer spread can have a negative influence on the position.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	Profit is generated when the share price changes in any direction., Limited loss., The profit is potentially unlimited when share prices are moving.	• 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.