PROTECTIVE COLLAR	NEUTRAL CALENDAR SPREAD
About Strategy	Protective Collar Strategy This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost. Buying protective puts can be an expensive proposition and writing OTM calls can defray the cost of the puts quite substantially. Protective Collar is considered as bearish to neutral strategy. In this strategy risk and reward is both are limited. This 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..

PROTECTIVE COLLAR Vs NEUTRAL CALENDAR SPREAD - Details

	PROTECTIVE COLLAR	NEUTRAL CALENDAR SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Limited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	-

PROTECTIVE COLLAR Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	PROTECTIVE COLLAR	NEUTRAL CALENDAR SPREAD
Market View	Neutral	Neutral
When to use?	This Strategy is implemented when the investor requires downside protection for the short - to medium term but at lower cost.	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	• Short 1 Call Option, • Long 1 Put Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Purchase Price of Underlying + Net Premium Paid	-

PROTECTIVE COLLAR Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	PROTECTIVE COLLAR	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	• Call strike - stock purchase price - net premium paid + net credit received	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	• Stock purchase price - put strike - net premium paid - put strike + net credit received	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Limited	Limited
Reward	Limited	Limited

PROTECTIVE COLLAR Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	PROTECTIVE COLLAR	NEUTRAL CALENDAR SPREAD
Similar Strategies	Bull Put Spread, Bull Call Spread	Long Put Butterfly, Iron Butterfly
Disadvantage	• Potential profit is lower or limited.	• Lower profitability • Must have enough experience.
Advantages	The Risk is limited.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.