BULL CALENDER SPREAD	CALL BACKSPREAD
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..	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..

BULL CALENDER SPREAD Vs CALL BACKSPREAD - Details

	BULL CALENDER SPREAD	CALL BACKSPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	2	3
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Unlimited
Risk Profile	Limited	Limited
Breakeven Point	Stock Price when long call value is equal to net debit.	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

BULL CALENDER SPREAD Vs CALL BACKSPREAD - When & How to use ?

	BULL CALENDER SPREAD	CALL BACKSPREAD
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 is used when the investor expects the price of the stock to rise in the future.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Sell 1 ITM Call, BUY 2 OTM Call
Breakeven Point	Stock Price when long call value is equal to net debit.	Lower breakeven = strike price of the short call, Upper breakeven = strike price of long calls + point of maximum loss

BULL CALENDER SPREAD Vs CALL BACKSPREAD - Risk & Reward

	BULL CALENDER SPREAD	CALL BACKSPREAD
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Unlimited profit potential if the stock goes in upward direction.
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Strike Price of long call - Strike Price of short call - Net premium received
Risk	Limited	Limited
Reward	Unlimited	Unlimited

BULL CALENDER SPREAD Vs CALL BACKSPREAD - Strategy Pros & Cons

	BULL CALENDER SPREAD	CALL BACKSPREAD
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.
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 potential.