NEUTRAL CALENDAR SPREAD	RISK REVERSAL
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..	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod .. Read more..

NEUTRAL CALENDAR SPREAD Vs RISK REVERSAL - Details

	NEUTRAL CALENDAR SPREAD	RISK REVERSAL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	-	Premium received - Put Strike Price

NEUTRAL CALENDAR SPREAD Vs RISK REVERSAL - When & How to use ?

	NEUTRAL CALENDAR SPREAD	RISK REVERSAL
Market View	Neutral	Bullish
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 can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	-	Premium received - Put Strike Price

NEUTRAL CALENDAR SPREAD Vs RISK REVERSAL - Risk & Reward

	NEUTRAL CALENDAR SPREAD	RISK REVERSAL
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Limited	Unlimited

NEUTRAL CALENDAR SPREAD Vs RISK REVERSAL - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	RISK REVERSAL
Similar Strategies	Long Put Butterfly, Iron Butterfly	-
Disadvantage	• Lower profitability • Must have enough experience.	Unlimited Risk.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	Unlimited profit.