NEUTRAL CALENDAR SPREAD	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

NEUTRAL CALENDAR SPREAD Vs STRAP - Details

	NEUTRAL CALENDAR SPREAD	STRAP
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	-	Strike Price of Calls/Puts + (Net Premium Paid/2)

NEUTRAL CALENDAR SPREAD Vs STRAP - When & How to use ?

	NEUTRAL CALENDAR SPREAD	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	-	Strike Price of Calls/Puts + (Net Premium Paid/2)

NEUTRAL CALENDAR SPREAD Vs STRAP - Risk & Reward

	NEUTRAL CALENDAR SPREAD	STRAP
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	UNLIMITED
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

NEUTRAL CALENDAR SPREAD Vs STRAP - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	STRAP
Similar Strategies	Long Put Butterfly, Iron Butterfly	Strip, Short Put Ladder, Short Call Ladder
Disadvantage	• Lower profitability • Must have enough experience.	• To generate profit, there should be significant change in share price. • Expensive strategy.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.