SHORT CALL	NEUTRAL CALENDAR SPREAD
About Strategy	Short Call Option Strategy A trader shorts or writes a Call Option when he feels that underlying stock price is likely to go down. Selling Call Option is a strategy preferred for experienced traders. However this strategy is very risky in nature. If the stock rallies on the upside, your risk becomes potentially unquantifiable and unlimited. If the strategy 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..

SHORT CALL Vs NEUTRAL CALENDAR SPREAD - Details

	SHORT CALL	NEUTRAL CALENDAR SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Strike Price of Short Call + Premium Received	-

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

	SHORT CALL	NEUTRAL CALENDAR SPREAD
Market View	Bearish	Neutral
When to use?	It is an aggressive strategy and involves huge risks. It should be used only in case where trader is certain about the bearish market view on the underlying.	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 or Write Call Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Strike Price of Short Call + Premium Received	-

SHORT CALL Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	SHORT CALL	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Max Profit = Premium Received	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Loss Occurs When Price of Underlying > Strike Price of Short Call + Premium Received	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Unlimited	Limited
Reward	Limited	Limited

SHORT CALL Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	SHORT CALL	NEUTRAL CALENDAR SPREAD
Similar Strategies	Covered Put, Covered Calls	Long Put Butterfly, Iron Butterfly
Disadvantage	• Unlimited risk to the upside underlying stocks. • Potential loss more than the premium collected.	• Lower profitability • Must have enough experience.
Advantages	• With the help of this strategy, traders can book profit from falling prices in the underlying asset. • Less investment, more profit. • Traders can book profit when underlying stock price fall, move sideways or rise by a small amount.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.