COVERED COMBINATION	NEUTRAL CALENDAR SPREAD
About Strategy	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un 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..

COVERED COMBINATION Vs NEUTRAL CALENDAR SPREAD - Details

	COVERED COMBINATION	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	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2	-

COVERED COMBINATION Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	COVERED COMBINATION	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
When to use?	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.	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 1 OTM Call, Sell 1 OTM Put	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2	-

COVERED COMBINATION Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	COVERED COMBINATION	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED COMBINATION Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	COVERED COMBINATION	NEUTRAL CALENDAR SPREAD
Similar Strategies	Stock Repair Strategy	Long Put Butterfly, Iron Butterfly
Disadvantage	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.	• Lower profitability • Must have enough experience.
Advantages	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.