LONG PUT	NEUTRAL CALENDAR SPREAD
About Strategy	Long Put Option Strategy This strategy is implemented by buying 1 Put Option i.e. a single position, when the person is bearish on the market and expects the market to move downwards in the near future. Risk: The maximum loss will be the premium amount paid.< 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..

LONG PUT Vs NEUTRAL CALENDAR SPREAD - Details

	LONG PUT	NEUTRAL CALENDAR SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option)	CE (Call Option)
Number Of Positions	1	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Strike Price of Long Put - Premium Paid	-

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

	LONG PUT	NEUTRAL CALENDAR SPREAD
Market View	Bearish	Neutral
When to use?	A long put option strategy works well when you're expecting the underlying asset to sharply decline or be volatile in near future.	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	Buy Put Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Strike Price of Long Put - Premium Paid	-

LONG PUT Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	LONG PUT	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Profit = Strike Price of Long Put - Premium Paid	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG PUT Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	LONG PUT	NEUTRAL CALENDAR SPREAD
Similar Strategies	Protective Call, Short Put	Long Put Butterfly, Iron Butterfly
Disadvantage	• 100% loss if strike price, expiration dates or underlying stocks are badly chosen. • Time decay.	• Lower profitability • Must have enough experience.
Advantages	• Limited risk to the premium paid. • Less capital investment and more profit. • Unlimited profit potential with limited risk.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.