LONG CALL	THE COLLAR
About Strategy	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 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 Vs THE COLLAR - Details

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

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

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

LONG CALL Vs THE COLLAR - Risk & Reward

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

LONG CALL Vs THE COLLAR - Strategy Pros & Cons

	LONG CALL	THE COLLAR
Similar Strategies	Protective Put	Call Spread, Bull Put Spread
Disadvantage	• 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.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• 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.