NEUTRAL CALENDAR SPREAD	COVERED PUT
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..	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..

NEUTRAL CALENDAR SPREAD Vs COVERED PUT - Details

	NEUTRAL CALENDAR SPREAD	COVERED PUT
Market View	Neutral	Bearish
Type (CE/PE)	CE (Call Option)	PE (Put Option) + Underlying
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Limited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	-	Futures Price + Premium Received

NEUTRAL CALENDAR SPREAD Vs COVERED PUT - When & How to use ?

	NEUTRAL CALENDAR SPREAD	COVERED PUT
Market View	Neutral	Bearish
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.	The Covered Put works well when the market is moderately Bearish.
Action	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call	Sell Underlying Sell OTM Put Option
Breakeven Point	-	Futures Price + Premium Received

NEUTRAL CALENDAR SPREAD Vs COVERED PUT - Risk & Reward

	NEUTRAL CALENDAR SPREAD	COVERED PUT
Maximum Profit Scenario	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	It occurs when the stock price goes down and stays down until expiration of the longer term options.	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Limited	Limited

NEUTRAL CALENDAR SPREAD Vs COVERED PUT - Strategy Pros & Cons

	NEUTRAL CALENDAR SPREAD	COVERED PUT
Similar Strategies	Long Put Butterfly, Iron Butterfly	Bear Put Spread, Bear Call Spread
Disadvantage	• Lower profitability • Must have enough experience.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
Advantages	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.	• 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.