THE COLLAR	LONG CALL
About Strategy	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op Read more..	Long Call Option Strategy This is one of the basic strategies as it involves entering into one position i.e. buying the Call Option only. Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future. Risk: Read more..

THE COLLAR Vs LONG CALL - Details

	THE COLLAR	LONG CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginner Level
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike Price + Premium

THE COLLAR Vs LONG CALL - When & How to use ?

	THE COLLAR	LONG CALL
Market View	Bullish	Bullish (Any investor who buys the Call Option will be bullish in nature and would be expecting the market to give decent returns in the near future.)
When to use?	It should be used only in case where trader is certain about the bearish market view.	This strategy work when an investor expect the underlying instrument move in upward direction.
Action	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option	Buying Call option
Breakeven Point	Price of Features - Call Premium + Put Premium	Strike price + Premium

THE COLLAR Vs LONG CALL - Risk & Reward

	THE COLLAR	LONG CALL
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received	Underlying Asset close above from the strike price on expiry.
Maximum Loss Scenario	Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

THE COLLAR Vs LONG CALL - Strategy Pros & Cons

	THE COLLAR	LONG CALL
Similar Strategies	Call Spread, Bull Put Spread	Protective Put
Disadvantage	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.	• In this strategy, there is not protection against the underlying stock falling in value. • 100% loss if the strike price, expiration dates or underlying stocks are badly chosen.
Advantages	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.