NEUTRAL CALENDAR SPREAD	THE 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..	The Collar Option Strategy Collar Strategy is an extension to Covered Call Strategy. A trader, who is bullish in nature but has a very low risk appetite and wants to mitigate his risk will implement the Collar Strategy. Collar involves buying of stock in either Cash/Futures Market, buying an ATM Put Option & selling an OTM Call Option. The expiry dates of the op .. Read more..

NEUTRAL CALENDAR SPREAD Vs THE COLLAR - Details

	NEUTRAL CALENDAR SPREAD	THE COLLAR
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option) + Underlying
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	-	Price of Features - Call Premium + Put Premium

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

	NEUTRAL CALENDAR SPREAD	THE COLLAR
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.	It should be used only in case where trader is certain about the bearish market view.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy Underlying, Buy 1 ATM Put Option, Sell 1 OTM Call Option
Breakeven Point	-	Price of Features - Call Premium + Put Premium

NEUTRAL CALENDAR SPREAD Vs THE COLLAR - Risk & Reward

	NEUTRAL CALENDAR SPREAD	THE COLLAR
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
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 Long Put - Net Premium Received
Risk	Limited	Limited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs THE COLLAR - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	THE COLLAR
Similar Strategies	Long Put Butterfly, Iron Butterfly	Call Spread, Bull Put Spread
Disadvantage	• Lower profitability • Must have enough experience.	• Limited profit. • A trader can book more profit without this strategy if the prices goes high.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• This strategy protects the losses on underlying asset. • Risk gets limited if the price of the stocks goes down. • Trader can get ownership benefits life dividend and voting rights.