NEUTRAL CALENDAR SPREAD	IRON 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..	Iron Butterfly Option Strategy  This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements. A trader will buy 1 OTM Put Option, sell 1 ATM Put Option, sell 1 ATM Call Option, buy 1 OTM Call Option. Due to offsetting of long and short positions, this strategy bags limited profit with limited risk. Read more..

NEUTRAL CALENDAR SPREAD Vs IRON BUTTERFLY - Details

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

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

	NEUTRAL CALENDAR SPREAD	IRON 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 implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	-	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

NEUTRAL CALENDAR SPREAD Vs IRON BUTTERFLY - Risk & Reward

	NEUTRAL CALENDAR SPREAD	IRON BUTTERFLY
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	IRON BUTTERFLY
Similar Strategies	Long Put Butterfly, Iron Butterfly	Long Put Butterfly, Neutral Calendar Spread
Disadvantage	• Lower profitability • Must have enough experience.	• Large commissions involved. • Probability of losses are higher.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Less amount of capital investment, steady income with low risk. • Traders can predict maximum loss and profit. • Versatile strategy, investors can transform position into bear call spread or bull put spread easily.