LONG CALL LADDER	PROTECTIVE PUT
About Strategy	Long Call Ladder Option Strategy  Long Call Ladder Strategy is an extension to Bull Call Spread Strategy. A trader will be slightly bullish about the market, in this strategy but bearish over volatility. It involves buying of an ITM Call Option and sale of 1 ATM & 1 OTM Call Options. However, the risk associated with this strategy is unlimited and reward is limited. 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 LADDER Vs PROTECTIVE PUT - Details

	LONG CALL LADDER	PROTECTIVE PUT
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	3	1
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Short Calls - Strike Price of Long Call - Net Premium Paid, Lower Breakeven Point = Strike Price of Long Call + Net Premium Paid	Purchase Price of Underlying + Premium Paid

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

	LONG CALL LADDER	PROTECTIVE PUT
Market View	Neutral	Bullish
When to use?	This Strategy is an extension to Bull Call Spread Strategy. A trader will be slightly bullish about the market, in this strategy but bearish over volatility.	This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Buy 1 ITM Call, Sell 1 ATM Call, Sell 1 OTM Call	Buy 1 ATM Put
Breakeven Point	Upper Breakeven Point = Total Strike Prices of Short Calls - Strike Price of Long Call - Net Premium Paid, Lower Breakeven Point = Strike Price of Long Call + Net Premium Paid	Purchase Price of Underlying + Premium Paid

LONG CALL LADDER Vs PROTECTIVE PUT - Risk & Reward

	LONG CALL LADDER	PROTECTIVE PUT
Maximum Profit Scenario	Strike Price of Lower Strike Short Call - Strike Price of Long Call - Net Premium Paid - Commissions Paid	Price of Underlying - Purchase Price of Underlying - Premium Paid
Maximum Loss Scenario	Price of Underlying - Upper Breakeven Price + Commissions Paid	Premium Paid + Purchase Price of Underlying - Put Strike + Commissions Paid
Risk	Unlimited	Limited
Reward	Unlimited	Unlimited

LONG CALL LADDER Vs PROTECTIVE PUT - Strategy Pros & Cons

	LONG CALL LADDER	PROTECTIVE PUT
Similar Strategies	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)	Long Call, Call Backspread
Disadvantage	• Unlimited risk. • Margin required.	• 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	• Reduces capital outlay of bull call spread. • Wider maximum profit zone. • When there is decrease in implied volatility, this strategy can give profit.	• 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.