LONG GUTS	PROTECTIVE COLLAR
About Strategy	Long Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude. This strategy involves buying 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Debit Spread because trader’s account is debited at the time of entering the positions.< 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..

LONG GUTS Vs PROTECTIVE COLLAR - Details

	LONG GUTS	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

LONG GUTS Vs PROTECTIVE COLLAR - When & How to use ?

	LONG GUTS	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	This strategy is implemented by a trader when he is neutral on the movements and bullish on volatility i.e. he expects the stock to move in either direction with high magnitude.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buy 1 ITM Call, Buy 1 ITM Put	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven Point = Net Premium Paid + Strike Price of Long Call, Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid	Purchase Price of Underlying + Net Premium Paid

LONG GUTS Vs PROTECTIVE COLLAR - Risk & Reward

	LONG GUTS	PROTECTIVE COLLAR
Maximum Profit Scenario	Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Premium Paid	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Net Premium Paid + Strike Price of Long Put - Strike Price of Long Call + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG GUTS Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	LONG GUTS	PROTECTIVE COLLAR
Similar Strategies	Short Put Ladder, Strip, Strap	Bull Put Spread, Bull Call Spread
Disadvantage	• More commission involved than simply buying call or put option. • Expensive.	• Potential profit is lower or limited.
Advantages	• Investors can get unlimited profit if the underlying asset goes up or down. • Ability to profit no matter if the market goes in either direction. • Limited loss.	The Risk is limited.