BEAR PUT SPREAD	PROTECTIVE CALL
About Strategy	Bear Put Spread Option Strategy  When a trader is moderately bearish on the market he can implement this strategy. Bear-Put-Spread involves buying of ITM Put Option and selling of an OTM Put Option. If prices fall, the ITM Put option starts making profits and the OTM Put option also adds to profit at a certain extent if the expiry price stays above the OTM strike. However, if it falls below the OTM 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..

BEAR PUT SPREAD Vs PROTECTIVE CALL - Details

	BEAR PUT SPREAD	PROTECTIVE CALL
Market View	Bearish	Bearish
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Net Premium	Sale Price of Underlying + Premium Paid

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

	BEAR PUT SPREAD	PROTECTIVE CALL
Market View	Bearish	Bearish
When to use?	The bear call spread options strategy is used when you are bearish in market view. The strategy minimizes your risk in the event of prime movements going against your expectations.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy ITM Put Option, Sell OTM Put Option	Buy 1 ATM Call
Breakeven Point	Strike Price of Long Put - Net Premium	Sale Price of Underlying + Premium Paid

BEAR PUT SPREAD Vs PROTECTIVE CALL - Risk & Reward

	BEAR PUT SPREAD	PROTECTIVE CALL
Maximum Profit Scenario	Max Profit = Strike Price of Long Put - Strike Price of Short Put - Net Premium Paid.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Max Loss = Net Premium Paid.	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

BEAR PUT SPREAD Vs PROTECTIVE CALL - Strategy Pros & Cons

	BEAR PUT SPREAD	PROTECTIVE CALL
Similar Strategies	Bear Call Spread, Bull Call Spread	Put Backspread, Long Put
Disadvantage	• Limited profit. • Early assignment risk.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• If the strike price, expiration date or underlying stocks are rightly chosen then risk of losses would be limited to the net premium paid. • This strategy works well in declining markets. • Limited risk.	• 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.