PROTECTIVE PUT	SHORT CALL CONDOR SPREAD
About Strategy	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..	Short Call Condor Spread Option Strategy Short Call Condor Spread is the opposite of Long Call Condor Spread i.e. sell 1 Deep ITM Call Option, buy 1 ITM Call Option, buy 1 OTM Call Option, sell 1 Deep OTM Call Option. Similar to Long Call Condor, the risk and rewards associated with this strategy are limited. Credit is received at the time of entering into this strategy. Read more..

PROTECTIVE PUT Vs SHORT CALL CONDOR SPREAD - Details

	PROTECTIVE PUT	SHORT CALL CONDOR SPREAD
Market View	Bullish	Volatile
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Premium Paid	Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium

PROTECTIVE PUT Vs SHORT CALL CONDOR SPREAD - When & How to use ?

	PROTECTIVE PUT	SHORT CALL CONDOR SPREAD
Market View	Bullish	Volatile
When to use?	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.	This strategy is used when an investor expect the price of the underlying stock to be very volatile.
Action	Buy 1 ATM Put	Buy ITM Call Option + Buy OTM Call Option + Sell Deep OTM Call Option + Sell Deep ITM Call Option
Breakeven Point	Purchase Price of Underlying + Premium Paid	Lower Breakeven = Lower Strike Price + Net Premium, Upper breakeven = Higher Strike Price - Net Premium

PROTECTIVE PUT Vs SHORT CALL CONDOR SPREAD - Risk & Reward

	PROTECTIVE PUT	SHORT CALL CONDOR SPREAD
Maximum Profit Scenario	Price of Underlying - Purchase Price of Underlying - Premium Paid	Strike Price of Lower Strike Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid
Maximum Loss Scenario	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid	Strike Price of Lower Strike Long Call - Strike Price of Lower Strike Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

PROTECTIVE PUT Vs SHORT CALL CONDOR SPREAD - Strategy Pros & Cons

	PROTECTIVE PUT	SHORT CALL CONDOR SPREAD
Similar Strategies	Long Call, Call Backspread	Short Strangle
Disadvantage	• 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.	• Amount of profit is low in comparison with other strategies. • As this strategy has 4 legs so the brokerage cost is higher that will affect your profit.
Advantages	• 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.	• This strategy allows you to profit from highly volatile underlying assets moving in any direction. • Earn profit with little or no investment. • Wider profit zone.