LONG STRANGLE	BULL CALENDER SPREAD
About Strategy	Long Strangle Option Strategy A Strangle is similar to Straddle. In Strangle, a trader will purchase one OTM Call Option and one OTM Put Option, of the same expiry date and the same underlying asset. This strategy will reduce the entry cost for trader and it is also cheaper than straddle. A trader will make profits, if the market moves sharply in either direction and gives extra-ordinary returns in the Read more..	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..

LONG STRANGLE Vs BULL CALENDER SPREAD - Details

	LONG STRANGLE	BULL CALENDER SPREAD
Market View	Neutral	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Stock Price when long call value is equal to net debit.

LONG STRANGLE Vs BULL CALENDER SPREAD - When & How to use ?

	LONG STRANGLE	BULL CALENDER SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is used in special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.	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.
Action	Buy OTM Call Option, Buy OTM Put Option	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	Stock Price when long call value is equal to net debit.

LONG STRANGLE Vs BULL CALENDER SPREAD - Risk & Reward

	LONG STRANGLE	BULL CALENDER SPREAD
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Max Loss = Net Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

LONG STRANGLE Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	LONG STRANGLE	BULL CALENDER SPREAD
Similar Strategies	Long Straddle, Short Strangle	The Collar, Bull Put Spread
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	• Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained.
Advantages	• Able to book profit, no matter if the underlying asset goes in either direction. • Limited loss to the debit paid. • If the underlying asset continues to move in one direction then you can book Unlimited profit .	• 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.