NEUTRAL CALENDAR SPREAD	LONG 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..	Long Straddle Option Strategy  Straddle is neither bullish nor bearish strategy; it is a market neutral strategy. Here a trader wishes to take advantage of the volatility in the market. This strategy involves buying of one Call option and one Put option of the same strike price, same expiry date and of the same underlying asset. Now a trader is bound to make profits once stock moves in either direc .. Read more..

NEUTRAL CALENDAR SPREAD Vs LONG STRADDLE - Details

	NEUTRAL CALENDAR SPREAD	LONG 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	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	-	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

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

	NEUTRAL CALENDAR SPREAD	LONG 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 options strategy is work well when and investor market view is bearish. The strategy minimizes your risk in the event of prime movements going against your expectations.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Buy Call Option, Buy Put Option
Breakeven Point	-	Lower Breakeven = Strike Price of Put - Net Premium, Upper breakeven = Strike Price of Call + Net Premium

NEUTRAL CALENDAR SPREAD Vs LONG STRADDLE - Risk & Reward

	NEUTRAL CALENDAR SPREAD	LONG STRADDLE
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Max profit is achieved when at one option is exercised.
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Maximum Loss = Net Premium Paid
Risk	Limited	Limited
Reward	Limited	Unlimited

NEUTRAL CALENDAR SPREAD Vs LONG STRADDLE - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	LONG STRADDLE
Similar Strategies	Long Put Butterfly, Iron Butterfly	Bear Put Spread
Disadvantage	• Lower profitability • Must have enough experience.	• There should be continuous movement of the stock and options price for this strategy to be profitable. • Time decay hurts long option if the strike price, expiration date or underlying stock are badly chosen.
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 beyond the breakeven point in either direction . • Book your profit from highly volatile stocks without determining the direction. • Limited risk, more profit.