PROTECTIVE PUT	SHORT CALL LADDER
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..	Short Call Ladder Option Strategy  This strategy is implemented when a trader is moderately bullish on the market, and volatility. It involves sale of an ITM Call Option, buying of an ATM Call Option & OTM Call Option. The risk associated with the strategy is limited. Risk: Read more..

PROTECTIVE PUT Vs SHORT CALL LADDER - Details

	PROTECTIVE PUT	SHORT CALL LADDER
Market View	Bullish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	3
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Premium Paid	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

PROTECTIVE PUT Vs SHORT CALL LADDER - When & How to use ?

	PROTECTIVE PUT	SHORT CALL LADDER
Market View	Bullish	Neutral
When to use?	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.	This strategy is implemented when a trader is moderately bullish on the market, and volatility
Action	Buy 1 ATM Put	Sell 1 ITM Call, Buy 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Purchase Price of Underlying + Premium Paid	Upper Breakeven Point = Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received Lower Breakeven Point = Strike Price of Short Call - Net Premium Received

PROTECTIVE PUT Vs SHORT CALL LADDER - Risk & Reward

	PROTECTIVE PUT	SHORT CALL LADDER
Maximum Profit Scenario	Price of Underlying - Purchase Price of Underlying - Premium Paid	Profit Achieved When Price of Underlying > Total Strike Prices of Long Calls - Strike Price of Short Call + Net Premium Received
Maximum Loss Scenario	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid	Strike Price of Lower Strike Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE PUT Vs SHORT CALL LADDER - Strategy Pros & Cons

	PROTECTIVE PUT	SHORT CALL LADDER
Similar Strategies	Long Call, Call Backspread	Short Put Ladder, Strip, Strap
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.	• Unlimited risk. • Margin required.
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.	• Higher probability of profit. • Unlimited upside profit. • Limited maximum loss.