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Protective call option
Protective call option assumes that buying a certain stock is followed by selling the call option on that stock (short position). So if stock price starts to fall, the investor realizes a profit based on call option.
For example, let's assume that current stock price id 50$ and an investor opens a short position on call option with strike price 50$ and the time of maturity of 60 days. Let's assume also that probability of stock price advancing by 20% for that time period is 2/3, and for falling by 10% is 1/3. At the end of a period of 60 days, in case that stock price rises to 60$, the investor will earn profit per share of 10$ and suffer a loss per option of 10$ (S - X = 60-50 = 10). In case of price falling to 45$ the investor suffers a loss on the share of the 5$, and the option becomes worthless.
Hedged position can be adjusted as:

This means that investor needs to buy two shares, and sell three options. Let's assume that price of the call options at the beginning of period is 4.762$. This means that investor needs to invest 100$ to purchase two shares and investor also collects money of selling three options: 3 x 4.762$ = 14.286$. So total investment is 100$ - 14.286$ = $ 85.714$.
If the stock price rises to 60$. The value of the portfolio is: 2 x 60$ (shares) and 3 x -10$ (options) = 120$ - 30$ = $ 90.
If the stock price falls to 45$, the value portfolio is: 2 x 45$ (shares) and 0$ (options) = 90$.
As you can see, for both limits (60$ and 45$) portfolio value is $ 90. Investor has invested 85.714$, so realized gain is 5% no matter if stock price rises to 60$ or declines to 45$. Of course, investor lost a chance to make bigger profit if stock price rises by 20%, but he reduced risk if stock price falls. Level of risk and profit has opposite affect - the higher the risk is, higher are the profits, and vice versa. In this case the investor wanted to reduce the risk and therefore must satisfy with a smaller potential profit.