LONG PUT	PROTECTIVE CALL
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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 PUT Vs PROTECTIVE CALL - Details

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

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

	LONG PUT	PROTECTIVE CALL
Market View	Bearish	Bearish
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	This strategy is implemented when a trader is bearish on the market and expects to go down.
Action	Buy Put Option	Buy 1 ATM Call
Breakeven Point	Strike Price of Long Put - Premium Paid	Sale Price of Underlying + Premium Paid

LONG PUT Vs PROTECTIVE CALL - Risk & Reward

	LONG PUT	PROTECTIVE CALL
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Sale Price of Underlying - Price of Underlying - Premium Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Premium Paid + Call Strike Price - Sale Price of Underlying + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG PUT Vs PROTECTIVE CALL - Strategy Pros & Cons

	LONG PUT	PROTECTIVE CALL
Similar Strategies	Protective Call, Short Put	Put Backspread, Long Put
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Profitable when market moves as expected. • Not good for beginners.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• 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.