BULL CALENDER SPREAD	RISK REVERSAL
About Strategy	Bull Calendar Spread Option Strategy This strategy is implemented when a trader is bullish on the underlying stock/index in the short term say 2 months or so. A trader will write one Near Month OTM Call Option and buy one next Month OTM Call Option, thereby reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when a trader wants to make prof Read more..	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..

BULL CALENDER SPREAD Vs RISK REVERSAL - Details

	BULL CALENDER SPREAD	RISK REVERSAL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Unlimited
Breakeven Point	Stock Price when long call value is equal to net debit.	Premium received - Put Strike Price

BULL CALENDER SPREAD Vs RISK REVERSAL - When & How to use ?

	BULL CALENDER SPREAD	RISK REVERSAL
Market View	Bullish	Bullish
When to use?	This strategy is used when a trader wants to make profit from a steady increase in the stock price over a short period of time.	This strategy can be used for hedging. When an investor want to protect long or short position by using a call and put option.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	This strategy work when an investor want to hedge their position by buying a put option and selling a call option.
Breakeven Point	Stock Price when long call value is equal to net debit.	Premium received - Put Strike Price

BULL CALENDER SPREAD Vs RISK REVERSAL - Risk & Reward

	BULL CALENDER SPREAD	RISK REVERSAL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	You have nearly unlimited downside risk as well because you are short the put
Risk	Limited	Unlimited
Reward	Unlimited	Unlimited

BULL CALENDER SPREAD Vs RISK REVERSAL - Strategy Pros & Cons

	BULL CALENDER SPREAD	RISK REVERSAL
Similar Strategies	The Collar, Bull Put Spread	-
Disadvantage	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.	Unlimited Risk.
Advantages	• Limited losses to the net debit. • Enable trader to book profit even if underlying asset stays stagnant. • If the market trends reverse, cashing in from stock price movement at limited risk.	Unlimited profit.