LONG STRANGLE	NEUTRAL CALENDAR 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..	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..

LONG STRANGLE Vs NEUTRAL CALENDAR SPREAD - Details

	LONG STRANGLE	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	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	-

LONG STRANGLE Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	LONG STRANGLE	NEUTRAL CALENDAR SPREAD
Market View	Neutral	Neutral
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 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	Buy OTM Call Option, Buy OTM Put Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Lower Breakeven Point = Strike Price of Put - Net Premium, Upper Breakeven Point = Strike Price of Call + Net Premium	-

LONG STRANGLE Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	LONG STRANGLE	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Max Loss = Net Premium Paid	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Limited	Limited
Reward	Unlimited	Limited

LONG STRANGLE Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	LONG STRANGLE	NEUTRAL CALENDAR SPREAD
Similar Strategies	Long Straddle, Short Strangle	Long Put Butterfly, Iron Butterfly
Disadvantage	• Require significant price movement to book profit. • Traders can lose more money if the underlying asset stayed stagnant.	• Lower profitability • Must have enough experience.
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 .	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.