Strategy

Protective Call

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Call bought to hedge short stock position

What is Protective Call?

Protective Call Buying a call option to protect a short stock position against an adverse upward price move. The call caps the maximum loss on the short stock at the call strike price plus the premium paid. This is the short-stock equivalent of a married put for long stock positions.

Complete Definition

Buying a call option to protect a short stock position against an adverse upward price move. The call caps the maximum loss on the short stock at the call strike price plus the premium paid. This is the short-stock equivalent of a married put for long stock positions.

Related Terms

Married Put Collar Call Option Short Selling

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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