NEUTRAL CALENDAR SPREAD	LONG PUT
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..	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< .. Read more..

NEUTRAL CALENDAR SPREAD Vs LONG PUT - Details

	NEUTRAL CALENDAR SPREAD	LONG PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	1
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	-	Strike Price of Long Put - Premium Paid

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

	NEUTRAL CALENDAR SPREAD	LONG PUT
Market View	Neutral	Bearish
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.	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy Put Option
Breakeven Point	-	Strike Price of Long Put - Premium Paid

NEUTRAL CALENDAR SPREAD Vs LONG PUT - Risk & Reward

	NEUTRAL CALENDAR SPREAD	LONG PUT
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Profit = Strike Price of Long Put - Premium Paid
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

NEUTRAL CALENDAR SPREAD Vs LONG PUT - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	LONG PUT
Similar Strategies	Long Put Butterfly, Iron Butterfly	Protective Call, Short Put
Disadvantage	• Lower profitability • Must have enough experience.	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.