NEUTRAL CALENDAR SPREAD	COVERED COMBINATION
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..	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

NEUTRAL CALENDAR SPREAD Vs COVERED COMBINATION - Details

	NEUTRAL CALENDAR SPREAD	COVERED COMBINATION
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	-	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

NEUTRAL CALENDAR SPREAD Vs COVERED COMBINATION - When & How to use ?

	NEUTRAL CALENDAR SPREAD	COVERED COMBINATION
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.	This strategy is mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell 1 OTM Call, Sell 1 OTM Put
Breakeven Point	-	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

NEUTRAL CALENDAR SPREAD Vs COVERED COMBINATION - Risk & Reward

	NEUTRAL CALENDAR SPREAD	COVERED COMBINATION
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs COVERED COMBINATION - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	COVERED COMBINATION
Similar Strategies	Long Put Butterfly, Iron Butterfly	Stock Repair Strategy
Disadvantage	• Lower profitability • Must have enough experience.	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.