NEUTRAL CALENDAR SPREAD	CALL BACKSPREAD
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..	Call Backspread Option Trading  This strategy is adopted by traders who are bullish in nature. He expects market and volatility to rise in the near future. A trader need not be direction specific here (i.e. an upward or downward trend, but a small bias towards an uptrend should always be present, as the gains will be much higher once the market moves up r .. Read more..

NEUTRAL CALENDAR SPREAD Vs CALL BACKSPREAD - Details

	NEUTRAL CALENDAR SPREAD	CALL BACKSPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Limited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	-	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

NEUTRAL CALENDAR SPREAD Vs CALL BACKSPREAD - When & How to use ?

	NEUTRAL CALENDAR SPREAD	CALL BACKSPREAD
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 used when the investor expects the price of the stock to rise in the future.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	-	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

NEUTRAL CALENDAR SPREAD Vs CALL BACKSPREAD - Risk & Reward

	NEUTRAL CALENDAR SPREAD	CALL BACKSPREAD
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Limited	Unlimited

NEUTRAL CALENDAR SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons

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