NEUTRAL CALENDAR SPREAD	LONG CALL BUTTERFLY
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 Call Butterfly Option Strategy A trader, who is neutral in nature and believes that there will be very low volatility i.e. expects the market to remain range bound, will implement this strategy. This strategy involves selling of 2 ATM Call Options, buying 1 ITM Call Option & buying 1 OTM Call Option of the same expiry date & same underlying asset. The difference between the strikes sho .. Read more..

NEUTRAL CALENDAR SPREAD Vs LONG CALL BUTTERFLY - Details

	NEUTRAL CALENDAR SPREAD	LONG CALL BUTTERFLY
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	-	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

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

	NEUTRAL CALENDAR SPREAD	LONG CALL BUTTERFLY
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 should be used when you're expecting no volatility in the price of the underlying.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell 2 ATM Call, Buy 1 ITM Call, Buy 1 OTM Call
Breakeven Point	-	Upper Breakeven = Higher Strike Price - Net Premium, Lower Breakeven = Lower Strike Price + Net Premium

NEUTRAL CALENDAR SPREAD Vs LONG CALL BUTTERFLY - Risk & Reward

	NEUTRAL CALENDAR SPREAD	LONG CALL BUTTERFLY
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Adjacent strikes - Net premium debit.
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs LONG CALL BUTTERFLY - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	LONG CALL BUTTERFLY
Similar Strategies	Long Put Butterfly, Iron Butterfly	-
Disadvantage	• Lower profitability • Must have enough experience.	• Due to limited lifespan of call options, you can lose the premium paid. • Limited profit which is bound in a narrow range between the two wing strikes.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Under this strategy, a trader can book profit even when there is not volatility in the market. • Limited risks to the net premium paid. • This strategy allows you to gain more profits by investing less and limiting your losses to minimum.