NEUTRAL CALENDAR SPREAD	SHORT GUTS
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 Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < .. Read more..

NEUTRAL CALENDAR SPREAD Vs SHORT GUTS - Details

	NEUTRAL CALENDAR SPREAD	SHORT GUTS
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	Unlimited
Breakeven Point	-	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

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

	NEUTRAL CALENDAR SPREAD	SHORT GUTS
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 by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell 1 ITM Call, Sell 1 ITM Put
Breakeven Point	-	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

NEUTRAL CALENDAR SPREAD Vs SHORT GUTS - Risk & Reward

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

NEUTRAL CALENDAR SPREAD Vs SHORT GUTS - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	SHORT GUTS
Similar Strategies	Long Put Butterfly, Iron Butterfly	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
Disadvantage	• Lower profitability • Must have enough experience.	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.