BULL CALENDER SPREAD	COVERED COMBINATION
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..	Covered Combination Option Strategy This strategy involves selling OTM Call & Put Options and buying the underlying asset in either cash or futures market. It is also known as Covered Strangle as the profits are capped and risk is potentially unlimited. Risk: Un .. Read more..

BULL CALENDER SPREAD Vs COVERED COMBINATION - Details

	BULL CALENDER SPREAD	COVERED COMBINATION
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Stock Price when long call value is equal to net debit.	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

BULL CALENDER SPREAD Vs COVERED COMBINATION - When & How to use ?

	BULL CALENDER SPREAD	COVERED COMBINATION
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 mainly suited for investors who are moderately bullish on a stock and are comfortable with increasing their position in the event of a price decline.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Sell 1 OTM Call, Sell 1 OTM Put
Breakeven Point	Stock Price when long call value is equal to net debit.	(Purchase Price of Underlying + Strike Price of Short Put - Net Premium Received) / 2

BULL CALENDER SPREAD Vs COVERED COMBINATION - Risk & Reward

	BULL CALENDER SPREAD	COVERED COMBINATION
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Purchase Price of Underlying + Strike Price of Short Put - (2 x Price of Underlying) - Max Profit + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

BULL CALENDER SPREAD Vs COVERED COMBINATION - Strategy Pros & Cons

	BULL CALENDER SPREAD	COVERED COMBINATION
Similar Strategies	The Collar, Bull Put Spread	Stock Repair Strategy
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.	Combinations can be profitable in sideways or rising markets. Greater combined net credit increases downside protection and potential return.
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.	Limited Maximum Profit on the upside. Covered Combinations should only be traded on stocks that are bullish.