LONG CALL	PROTECTIVE CALL
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..	Protective Call Option Strategy This strategy is simply the reversal of the Synthetic Call Strategy. This strategy is implemented when a trader is bearish on the market and expects to go down. Trader will short underlying stock in the cash market and buy either an ATM Call Option or OTM Call Option. The Call Option is bought to protect / hedge the upside risk on the short position. The .. Read more..

LONG CALL Vs PROTECTIVE CALL - Details

	LONG CALL	PROTECTIVE CALL
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	1
Strategy Level	Beginner Level	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price + Premium	Sale Price of Underlying + Premium Paid

LONG CALL Vs PROTECTIVE CALL - When & How to use ?

	LONG CALL	PROTECTIVE CALL
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.)	Bearish
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buying Call option	Buy 1 ATM Call
Breakeven Point	Strike price + Premium	Sale Price of Underlying + Premium Paid

LONG CALL Vs PROTECTIVE CALL - Risk & Reward

	LONG CALL	PROTECTIVE CALL
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Premium Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG CALL Vs PROTECTIVE CALL - Strategy Pros & Cons

	LONG CALL	PROTECTIVE CALL
Similar Strategies	Protective Put	Put Backspread, Long Put
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.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• Limited risk if the market moves in opposite direction as expected. • Allows you to keep open a profitable position to make further profits. • Unlimited profit potential.