NEUTRAL CALENDAR SPREAD	PROTECTIVE COLLAR
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..	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This .. Read more..

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE COLLAR - Details

	NEUTRAL CALENDAR SPREAD	PROTECTIVE COLLAR
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	-	Purchase Price of Underlying + Net Premium Paid

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE COLLAR - When & How to use ?

	NEUTRAL CALENDAR SPREAD	PROTECTIVE COLLAR
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 the investor requires downside protection for the short - to medium term but at lower cost.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	• Short 1 Call Option, • Long 1 Put Option
Breakeven Point	-	Purchase Price of Underlying + Net Premium Paid

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE COLLAR - Risk & Reward

	NEUTRAL CALENDAR SPREAD	PROTECTIVE COLLAR
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	• Call strike - stock purchase price - net premium paid + net credit received
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	• Stock purchase price - put strike - net premium paid - put strike + net credit received
Risk	Limited	Limited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE COLLAR - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	PROTECTIVE COLLAR
Similar Strategies	Long Put Butterfly, Iron Butterfly	Bull Put Spread, Bull Call Spread
Disadvantage	• Lower profitability • Must have enough experience.	• Potential profit is lower or limited.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	The Risk is limited.