THE COLLAR	MARRIED PUT
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op Read more..	Married Put Option Strategy This strategy is applied when trader goes long on the underlying asset i.e. he buys the stock in cash market. He has a bullish view and expects the market to rise in the near future, but simultaneously has the fear of downward movement of the markets. In order to cover his position from vulnerabilities he buys one ATM Put Option of the same underlying asset. Here, a trader wi .. Read more..

THE COLLAR Vs MARRIED PUT - Details

	THE COLLAR	MARRIED PUT
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Purchase Price of Underlying + Premium Paid

THE COLLAR Vs MARRIED PUT - When & How to use ?

	THE COLLAR	MARRIED PUT
Market View	Bullish	Bullish
When to use?	It should be used only in case where trader is certain about the bearish market view.	This Strategy work when the investor goes long in any stock. He expects the rise in market in future.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Buy 250 XYZ Shares, Buy 1 ATM Put Option
Breakeven Point	Price of Features - Call Premium + Put Premium	Purchase Price of Underlying + Premium Paid

THE COLLAR Vs MARRIED PUT - Risk & Reward

	THE COLLAR	MARRIED PUT
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Profit = Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

THE COLLAR Vs MARRIED PUT - Strategy Pros & Cons

	THE COLLAR	MARRIED PUT
Similar Strategies	Call Spread, Bull Put Spread	Long Call
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	Cost of the put options eats into profit margin.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	Unlimited Profit and Limited Risk