LONG CALL	PROTECTIVE 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..	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 CALL Vs PROTECTIVE COLLAR - Details

	LONG CALL	PROTECTIVE COLLAR
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	1	2
Strategy Level	Beginner Level	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price + Premium	Purchase Price of Underlying + Net Premium Paid

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

	LONG CALL	PROTECTIVE 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.)	Neutral
When to use?	This strategy work when an investor expect the underlying instrument move in upward direction.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Buying Call option	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Strike price + Premium	Purchase Price of Underlying + Net Premium Paid

LONG CALL Vs PROTECTIVE COLLAR - Risk & Reward

	LONG CALL	PROTECTIVE COLLAR
Maximum Profit Scenario	Underlying Asset close above from the strike price on expiry.	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Premium Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG CALL Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	LONG CALL	PROTECTIVE COLLAR
Similar Strategies	Protective Put	Bull Put Spread, Bull Call 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.	• Potential profit is lower or limited.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	The Risk is limited.