NEUTRAL CALENDAR SPREAD	SYNTHETIC LONG CALL
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..	Synthetic Long Call Option Strategy A trader is bullish in nature for short term, but also fearful about the downside risk associated with it. Here, a trader wants to hold an underlying asset either in physical form like in case of commodities or demat (electronic) form in case of stocks. But he is always exposed to downside risk and in order to mitigate his losses, .. Read more..

NEUTRAL CALENDAR SPREAD Vs SYNTHETIC LONG CALL - Details

	NEUTRAL CALENDAR SPREAD	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	When Price of Underlying > Purchase Price of Underlying + Premium Paid
Risk Profile	Limited	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)
Breakeven Point	-	Underlying Price + Put Premium

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

	NEUTRAL CALENDAR SPREAD	SYNTHETIC LONG CALL
Market View	Neutral	Bullish
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 trader is bullish in nature for short term, but also fearful about the downside risk associated with it.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy 1 ATM Put or OTM Put
Breakeven Point	-	Underlying Price + Put Premium

NEUTRAL CALENDAR SPREAD Vs SYNTHETIC LONG CALL - Risk & Reward

	NEUTRAL CALENDAR SPREAD	SYNTHETIC LONG CALL
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Current Price - Purchase Price - Premium Paid
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

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

	NEUTRAL CALENDAR SPREAD	SYNTHETIC LONG CALL
Similar Strategies	Long Put Butterfly, Iron Butterfly	Protective Put, Long Call
Disadvantage	• Lower profitability • Must have enough experience.	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.
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, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.