BULL CALENDER SPREAD	IRON BUTTERFLY
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..	Iron Butterfly Option Strategy  This strategy is implemented when a trader is bearish on the volatility of market and neutral on the market movements. A trader will buy 1 OTM Put Option, sell 1 ATM Put Option, sell 1 ATM Call Option, buy 1 OTM Call Option. Due to offsetting of long and short positions, this strategy bags limited profit with limited risk. Read more..

BULL CALENDER SPREAD Vs IRON BUTTERFLY - Details

	BULL CALENDER SPREAD	IRON BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	4
Strategy Level	Beginners	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Limited
Breakeven Point	Stock Price when long call value is equal to net debit.	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL CALENDER SPREAD Vs IRON BUTTERFLY - When & How to use ?

	BULL CALENDER SPREAD	IRON BUTTERFLY
Market View	Bullish	Neutral
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 implemented when a trader is bearish on the volatility of market and neutral on the market movements.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Buy 1 OTM Put, Sell 1 ATM Put, Sell 1 ATM Call, Buy 1 OTM Call
Breakeven Point	Stock Price when long call value is equal to net debit.	Upper Breakeven Point = Strike Price of Short Call + Net Premium Received, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL CALENDER SPREAD Vs IRON BUTTERFLY - Risk & Reward

	BULL CALENDER SPREAD	IRON BUTTERFLY
Maximum Profit Scenario	You have unlimited profit potential to the upside.	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
Risk	Limited	Limited
Reward	Unlimited	Limited

BULL CALENDER SPREAD Vs IRON BUTTERFLY - Strategy Pros & Cons

	BULL CALENDER SPREAD	IRON BUTTERFLY
Similar Strategies	The Collar, Bull Put Spread	Long Put Butterfly, Neutral Calendar 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.	• Large commissions involved. • Probability of losses are higher.
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.	• Less amount of capital investment, steady income with low risk. • Traders can predict maximum loss and profit. • Versatile strategy, investors can transform position into bear call spread or bull put spread easily.