SHORT STRADDLE	PROTECTIVE CALL
About Strategy	Short Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an 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..

SHORT STRADDLE Vs PROTECTIVE CALL - Details

	SHORT STRADDLE	PROTECTIVE CALL
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	1
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Sale Price of Underlying + Premium Paid

SHORT STRADDLE Vs PROTECTIVE CALL - When & How to use ?

	SHORT STRADDLE	PROTECTIVE CALL
Market View	Neutral	Bearish
When to use?	This strategy is work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Sell Call Option, Sell Put Option	Buy 1 ATM Call
Breakeven Point	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium	Sale Price of Underlying + Premium Paid

SHORT STRADDLE Vs PROTECTIVE CALL - Risk & Reward

	SHORT STRADDLE	PROTECTIVE CALL
Maximum Profit Scenario	Max Profit = Net Premium Received - Commissions Paid	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

SHORT STRADDLE Vs PROTECTIVE CALL - Strategy Pros & Cons

	SHORT STRADDLE	PROTECTIVE CALL
Similar Strategies	Short Strangle	Put Backspread, Long Put
Disadvantage	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .	• 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.