COVERED PUT	BULL CALENDER 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..	Bull Calendar Spread Option Strategy This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof .. Read more..

COVERED PUT Vs BULL CALENDER SPREAD - Details

	COVERED PUT	BULL CALENDER SPREAD
Market View	Bearish	Bullish
Type (CE/PE)	PE (Put Option) + Underlying	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Futures Price + Premium Received	Stock Price when long call value is equal to net debit.

COVERED PUT Vs BULL CALENDER SPREAD - When & How to use ?

	COVERED PUT	BULL CALENDER SPREAD
Market View	Bearish	Bullish
When to use?	The Covered Put works well when the market is moderately Bearish.	This strategy is used when a trader wants to make profit from a steady increase in the stock price over a short period of time.
Action	Sell Underlying Sell OTM Put Option	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Futures Price + Premium Received	Stock Price when long call value is equal to net debit.

COVERED PUT Vs BULL CALENDER SPREAD - Risk & Reward

	COVERED PUT	BULL CALENDER SPREAD
Maximum Profit Scenario	The profit happens when the price of the underlying moves above strike price of Short Put.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Price of Underlying - Sale Price of Underlying - Premium Received	Max Loss = Premium Paid + Commissions Paid
Risk	Unlimited	Limited
Reward	Limited	Unlimited

COVERED PUT Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	COVERED PUT	BULL CALENDER SPREAD
Similar Strategies	Bear Put Spread, Bear Call Spread	The Collar, Bull Put Spread
Disadvantage	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.
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.	• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.