NEUTRAL CALENDAR SPREAD	SHORT STRADDLE
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 Straddle Option strategy This strategy is just the opposite of Long Straddle. A trader should adopt this strategy when he expects less volatility in the near future. Here, a trader will sell one Call Option & one Put Option of the same strike price, same expiry date and of the same underlying asset. If the stock/index hovers around the same levels then both the options will expire worthless an .. Read more..

NEUTRAL CALENDAR SPREAD Vs SHORT STRADDLE - Details

	NEUTRAL CALENDAR SPREAD	SHORT STRADDLE
Market View	Neutral	Neutral
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	-	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

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

	NEUTRAL CALENDAR SPREAD	SHORT STRADDLE
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 work well when an investor expect a flat market in the coming days with very less movement in the prices of underlying asset.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell Call Option, Sell Put Option
Breakeven Point	-	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call+ Net Premium

NEUTRAL CALENDAR SPREAD Vs SHORT STRADDLE - Risk & Reward

	NEUTRAL CALENDAR SPREAD	SHORT STRADDLE
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Max Profit = 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.	Maximum Loss = Long Call Strike Price - Short Call Strike Price - Net Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs SHORT STRADDLE - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	SHORT STRADDLE
Similar Strategies	Long Put Butterfly, Iron Butterfly	Short Strangle
Disadvantage	• Lower profitability • Must have enough experience.	• Unlimited risk. • If the price of the underlying asset moves in either direction then huge losses can occur.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• A trader can earn profit even when there is no volatility in the market . • Allows you to benefit from double time decay. • Trader can collect premium from puts and calls option .