PROTECTIVE PUT	BULL CALENDER SPREAD
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..	Bull Calendar Spread Option Strategy This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof .. Read more..

PROTECTIVE PUT Vs BULL CALENDER SPREAD - Details

	PROTECTIVE PUT	BULL CALENDER SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Premium Paid	Stock Price when long call value is equal to net debit.

PROTECTIVE PUT Vs BULL CALENDER SPREAD - When & How to use ?

	PROTECTIVE PUT	BULL CALENDER SPREAD
Market View	Bullish	Bullish
When to use?	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.	This strategy is used when a trader wants to make profit from a steady increase in the stock price over a short period of time.
Action	Buy 1 ATM Put	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Purchase Price of Underlying + Premium Paid	Stock Price when long call value is equal to net debit.

PROTECTIVE PUT Vs BULL CALENDER SPREAD - Risk & Reward

	PROTECTIVE PUT	BULL CALENDER SPREAD
Maximum Profit Scenario	Price of Underlying - Purchase Price of Underlying - Premium Paid	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

PROTECTIVE PUT Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	PROTECTIVE PUT	BULL CALENDER SPREAD
Similar Strategies	Long Call, Call Backspread	The Collar, Bull Put Spread
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.	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.
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.	• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.