LONG CALL	PROTECTIVE PUT
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 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..

LONG CALL Vs PROTECTIVE PUT - Details

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

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

	LONG CALL	PROTECTIVE PUT
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.	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buying Call option	Buy 1 ATM Put
Breakeven Point	Strike price + Premium	Purchase Price of Underlying + Premium Paid

LONG CALL Vs PROTECTIVE PUT - Risk & Reward

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

LONG CALL Vs PROTECTIVE PUT - Strategy Pros & Cons

	LONG CALL	PROTECTIVE PUT
Similar Strategies	Protective Put	Long Call, Call Backspread
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.	• 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.
Advantages	• Less investment, more profit. • Unlimited profit with limited risk. • High leverage than simply owning the stock.	• 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.