BULL CALENDER SPREAD	COVERED PUT
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 Put Option Strategy  This strategy is exactly opposite to Covered Call Strategy. Here the investor is neutral or moderately bearish in nature and wants to take advantage of the price fall in the near future. The trader will short one lot of stock future. Now the trader will short ATM Put Option, the option strike price will be his exit price. If the prices rally above the strike price, the .. Read more..

BULL CALENDER SPREAD Vs COVERED PUT - Details

	BULL CALENDER SPREAD	COVERED PUT
Market View	Bullish	Bearish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	PE (Put Option) + Underlying
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.	Futures Price + Premium Received

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

	BULL CALENDER SPREAD	COVERED PUT
Market View	Bullish	Bearish
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.	The Covered Put works well when the market is moderately Bearish.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Sell Underlying Sell OTM Put Option
Breakeven Point	Stock Price when long call value is equal to net debit.	Futures Price + Premium Received

BULL CALENDER SPREAD Vs COVERED PUT - Risk & Reward

	BULL CALENDER SPREAD	COVERED PUT
Maximum Profit Scenario	You have unlimited profit potential to the upside.	The profit happens when the price of the underlying moves above strike price of Short Put.
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Price of Underlying - Sale Price of Underlying - Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

BULL CALENDER SPREAD Vs COVERED PUT - Strategy Pros & Cons

	BULL CALENDER SPREAD	COVERED PUT
Similar Strategies	The Collar, Bull Put Spread	Bear Put Spread, Bear Call 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.	• Limited profit, unlimited risk. • Trader should have enough experience before using this strategy.
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.	• Investors can book profit when underlying stock price drop, move sideways or rises by a small amount. • Able to generate monthly income. • Able to generate profit from fall in prices or mild increase in the prices.