PROTECTIVE PUT	DIAGONAL BULL CALL SPREAD
About Strategy	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..	Diagonal Bull Call Spread Option Strategy This strategy is implemented by a trader when he is neutral – moderately bullish in the near-month contract and bullish in the mid-month contract. It involves sale of 1 Near-Month OTM Call Option and buying of 1 Mid Month ITM Call Option. Risk: Read more..

PROTECTIVE PUT Vs DIAGONAL BULL CALL SPREAD - Details

	PROTECTIVE PUT	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Premium Paid

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

	PROTECTIVE PUT	DIAGONAL BULL CALL SPREAD
Market View	Bullish	Bullish
When to use?	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buy 1 ATM Put	Buy 1 Long-Term ITM Call Sell 1 Near-Term OTM Call
Breakeven Point	Purchase Price of Underlying + Premium Paid

PROTECTIVE PUT Vs DIAGONAL BULL CALL SPREAD - Risk & Reward

	PROTECTIVE PUT	DIAGONAL BULL CALL SPREAD
Maximum Profit Scenario	Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE PUT Vs DIAGONAL BULL CALL SPREAD - Strategy Pros & Cons

	PROTECTIVE PUT	DIAGONAL BULL CALL SPREAD
Similar Strategies	Long Call, Call Backspread	Bull Put Spread
Disadvantage	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.