NEUTRAL CALENDAR SPREAD	SHORT 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..	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the .. Read more..

NEUTRAL CALENDAR SPREAD Vs SHORT CALL BUTTERFLY - Details

	NEUTRAL CALENDAR SPREAD	SHORT 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	-	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

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

	NEUTRAL CALENDAR SPREAD	SHORT 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 is meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call
Breakeven Point	-	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

NEUTRAL CALENDAR SPREAD Vs SHORT CALL BUTTERFLY - Risk & Reward

	NEUTRAL CALENDAR SPREAD	SHORT CALL BUTTERFLY
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	The profit is limited to the net premium received.
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Higher strike price- Lower Strike Price - Net Premium
Risk	Limited	Limited
Reward	Limited	Limited

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

	NEUTRAL CALENDAR SPREAD	SHORT CALL BUTTERFLY
Similar Strategies	Long Put Butterfly, Iron Butterfly	Long Straddle, Long Call Butterfly
Disadvantage	• Lower profitability • Must have enough experience.	• Limited rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.