BEAR CALL SPREAD	PROTECTIVE COLLAR
About Strategy	Bear Call Spread Option Strategy  Bear Call Spread option trading strategy is used by a trader who is bearish in nature and expects the underlying asset to dip in the near future. This strategy includes buying of an ‘Out of the Money’ Call Option and selling one ‘In the Money’ Call Option of the same underlying asset and the same expiration date. When you write a call, you receive premium thereby r 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..

BEAR CALL SPREAD Vs PROTECTIVE COLLAR - Details

	BEAR CALL SPREAD	PROTECTIVE COLLAR
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Short Call + Net Premium Received	Purchase Price of Underlying + Net Premium Paid

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

	BEAR CALL SPREAD	PROTECTIVE COLLAR
Market View	Bearish	Neutral
When to use?	This 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 the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy OTM Call Option, Sell ITM Call Option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Strike Price of Short Call + Net Premium Received	Purchase Price of Underlying + Net Premium Paid

BEAR CALL SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

	BEAR CALL SPREAD	PROTECTIVE COLLAR
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

BEAR CALL SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	BEAR CALL SPREAD	PROTECTIVE COLLAR
Similar Strategies	Bear Put Spread, Bull Call Spread	Bull Put Spread, Bull Call Spread
Disadvantage	• Limited amount of profit. • Margin requirement, more commission charges.	• Potential profit is lower or limited.
Advantages	• This strategy takes advantage of time decay. • Investors can get profit in a flat market scenario. • Investors can earn options premium income with a lower degree of risk.	The Risk is limited.