NEUTRAL CALENDAR SPREAD	PROTECTIVE PUT
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..	Protective Put Option Strategy Protective Put Strategy is a hedging strategy where trader guards himself from the downside risk. This strategy is adopted when a trader is long on the underlying asset but skeptical of the downside. He will buy one ATM Put Option to hedge his position. Now, if the underlying asset moves either up or down, the trader is in a safe position. Read more..

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE PUT - Details

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

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

	NEUTRAL CALENDAR SPREAD	PROTECTIVE PUT
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 adopted when a trader is long on the underlying asset but skeptical of the downside.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy 1 ATM Put
Breakeven Point	-	Purchase Price of Underlying + Premium Paid

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE PUT - Risk & Reward

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

NEUTRAL CALENDAR SPREAD Vs PROTECTIVE PUT - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	PROTECTIVE PUT
Similar Strategies	Long Put Butterfly, Iron Butterfly	Long Call, Call Backspread
Disadvantage	• Lower profitability • Must have enough experience.	• Value of protective put position decreases as time passes • Holding period of the protective put can be affected by the timing as a result tax rate on the profit or loss from the stock can be affected.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Unlimited potential profit due to indefinitely rise in the underlying stock price . • This strategy allows you to hold on to your stocks while insuring against losses. • Hedging strategy, trader can guard himself from the downside risk.