RISK REVERSAL	NEUTRAL CALENDAR SPREAD
About Strategy	Risk Reversal Option Strategy This strategy protects an investor from unfavourable price movements in the position but limits the profits can be made on that position. A risk reversal is a hedging strategy that protects a long or short position by using put and call options. In this one option is buying and other is written. In this strategy the trader has to pay a premium, while the written option prod Read more..	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..

RISK REVERSAL Vs NEUTRAL CALENDAR SPREAD - Details

	RISK REVERSAL	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Unlimited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Premium received - Put Strike Price	-

RISK REVERSAL Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	RISK REVERSAL	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
When to use?	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.	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.
Action	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Premium received - Put Strike Price	-

RISK REVERSAL Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	RISK REVERSAL	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	You have nearly unlimited downside risk as well because you are short the put	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Unlimited	Limited
Reward	Unlimited	Limited

RISK REVERSAL Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	RISK REVERSAL	NEUTRAL CALENDAR SPREAD
Similar Strategies	-	Long Put Butterfly, Iron Butterfly
Disadvantage	Unlimited Risk.	• Lower profitability • Must have enough experience.
Advantages	Unlimited profit.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.