LONG COMBO	NEUTRAL CALENDAR SPREAD
About Strategy	Long Combo Option Strategy  Long Combo Option Trading Strategy is implemented when a trader is bullish in nature and expects the stock price to rise in the near future. Here a trader will sell one ‘Out of the Money’ Put Option and buy one ‘Out of the Money’ Call Option. This trade will require less capital to implement since the amount required to buy the call will be covered by the amount received Read more..	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..

LONG COMBO Vs NEUTRAL CALENDAR SPREAD - Details

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

LONG COMBO Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	LONG COMBO	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
When to use?	This strategy is used when an investor Bullish on an underlying but don't have the required capital or the risk appetite to invest directly into it.	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.
Action	Sell OTM Put Option, Buy OTM Call Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Call Strike + Net Premium	-

LONG COMBO Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	LONG COMBO	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Underlying asset goes up and Call option exercised	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Underlying asset goes down and Put option exercised	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Unlimited	Limited
Reward	Unlimited	Limited

LONG COMBO Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	LONG COMBO	NEUTRAL CALENDAR SPREAD
Similar Strategies	-	Long Put Butterfly, Iron Butterfly
Disadvantage	• Losses can keep on increasing as the price of stock goes down. • High risk strategy.	• Lower profitability • Must have enough experience.
Advantages	• Capital investment is low and returns are high. • Unlimited reward, returns keep on increasing with the increase on stock price. • Leverage facility provided by this strategy is very beneficial.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.