SHORT PUT LADDER	PROTECTIVE COLLAR
About Strategy	Short Put Ladder Option Strategy  This strategy is implemented when a trader is slightly bearish on the market. A trader is required to be bullish over the volatility in the market. It involves sale of an ITM Put Option and buying of 1 ATM & 1 OTM Put Options. However, the risk associated with this strategy is limited. 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..

SHORT PUT LADDER Vs PROTECTIVE COLLAR - Details

	SHORT PUT LADDER	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	3	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Purchase Price of Underlying + Net Premium Paid

SHORT PUT LADDER Vs PROTECTIVE COLLAR - When & How to use ?

	SHORT PUT LADDER	PROTECTIVE COLLAR
Market View	Neutral	Neutral
When to use?	This strategy is implemented when a trader is slightly bearish on the market.	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell ITM Put Option, Buying 1 ATM & 1 OTM Put Option.	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	Upper Breakeven Point = Strike Price of Short Put - Net Premium Received Lower Breakeven Point = Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	Purchase Price of Underlying + Net Premium Paid

SHORT PUT LADDER Vs PROTECTIVE COLLAR - Risk & Reward

	SHORT PUT LADDER	PROTECTIVE COLLAR
Maximum Profit Scenario	When Price of Underlying < Total Strike Prices of Long Puts - Strike Price of Short Put + Net Premium Received	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	Strike Price of Short Put - Strike Price of Higher Strike Long Put - Net Premium Received + Commissions Paid	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Unlimited	Limited

SHORT PUT LADDER Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	SHORT PUT LADDER	PROTECTIVE COLLAR
Similar Strategies	Strap, Strip	Bull Put Spread, Bull Call Spread
Disadvantage	• Best to use when you are confident about movement of market. • Small margin required.	• Potential profit is lower or limited.
Advantages	• When there is surge in implied volatility, this strategy can give more profit. • Unlimited downside profit. • Limited risk and unlimited reward strategy.	The Risk is limited.