NEUTRAL CALENDAR SPREAD	SHORT STRANGLE
About Strategy	Neutral Calendar Spread Option strategy  This strategy is implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option, hence reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when the trader wants to make money from the Read more..	Short Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

NEUTRAL CALENDAR SPREAD Vs SHORT STRANGLE - Details

	NEUTRAL CALENDAR SPREAD	SHORT STRANGLE
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	-	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

NEUTRAL CALENDAR SPREAD Vs SHORT STRANGLE - When & How to use ?

	NEUTRAL CALENDAR SPREAD	SHORT STRANGLE
Market View	Neutral	Neutral
When to use?	This strategy is implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option.	This strategy is perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell OTM Call, Sell OTM Put
Breakeven Point	-	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

NEUTRAL CALENDAR SPREAD Vs SHORT STRANGLE - Risk & Reward

	NEUTRAL CALENDAR SPREAD	SHORT STRANGLE
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Maximum Profit = Net Premium Received
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Loss = Price of Underlying - Strike Price of Short Call - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	SHORT STRANGLE
Similar Strategies	Long Put Butterfly, Iron Butterfly	Short Straddle, Long Strangle
Disadvantage	• Lower profitability • Must have enough experience.	• Unlimited loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.