STRAP	BULL CALENDER SPREAD
About Strategy	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin 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..

STRAP Vs BULL CALENDER SPREAD - Details

	STRAP	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	3	2
Strategy Level	Beginners	Beginners
Reward Profile	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid	Unlimited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Stock Price when long call value is equal to net debit.

STRAP Vs BULL CALENDER SPREAD - When & How to use ?

	STRAP	BULL CALENDER SPREAD
Market View	Neutral	Bullish
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	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 2 ATM Call Option, Buy 1 ATM Put Option	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	Stock Price when long call value is equal to net debit.

STRAP Vs BULL CALENDER SPREAD - Risk & Reward

	STRAP	BULL CALENDER SPREAD
Maximum Profit Scenario	UNLIMITED	You have unlimited profit potential to the upside.
Maximum Loss Scenario	Net Premium Paid	Max Loss = Premium Paid + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

STRAP Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	STRAP	BULL CALENDER SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	The Collar, Bull Put Spread
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• 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 loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• 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.