COVERED CALL	NEUTRAL CALENDAR SPREAD
About Strategy	Covered Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o 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..

COVERED CALL Vs NEUTRAL CALENDAR SPREAD - Details

	COVERED CALL	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	CE (Call Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Limited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received	-

COVERED CALL Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	COVERED CALL	NEUTRAL CALENDAR SPREAD
Market View	Bullish	Neutral
When to use?	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.	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 Underlying) (Sell OTM Call Option)	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Purchase Price of Underlying- Premium Received	-

COVERED CALL Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	COVERED CALL	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	[Call Strike Price - Stock Price Paid] + Premium Received	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Purchase Price of Underlying - Price of Underlying) + Premium Received	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Unlimited	Limited
Reward	Limited	Limited

COVERED CALL Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	COVERED CALL	NEUTRAL CALENDAR SPREAD
Similar Strategies	Bull Call Spread	Long Put Butterfly, Iron Butterfly
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• Lower profitability • Must have enough experience.
Advantages	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.