COVERED PUT	NEUTRAL CALENDAR SPREAD
About Strategy	Covered Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the 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..

COVERED PUT Vs NEUTRAL CALENDAR SPREAD - Details

	COVERED PUT	NEUTRAL CALENDAR SPREAD
Market View	Bearish	Neutral
Type (CE/PE)	PE (Put Option) + Underlying	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	-

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

	COVERED PUT	NEUTRAL CALENDAR SPREAD
Market View	Bearish	Neutral
When to use?	The Covered Put works well when the market is moderately Bearish.	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 Underlying Sell OTM Put Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Futures Price + Premium Received	-

COVERED PUT Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	COVERED PUT	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - 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

COVERED PUT Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	COVERED PUT	NEUTRAL CALENDAR SPREAD
Similar Strategies	Bear Put Spread, Bear Call Spread	Long Put Butterfly, Iron Butterfly
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Lower profitability • Must have enough experience.
Advantages	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.