BULL CALENDER SPREAD	SHORT CALL 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..	Short Call Butterfly Option Strategy This strategy is opposite of the Long Call Butterfly Strategy, a trader expects the market to remain range bound in Long Call Butterfly, but here he expects the market to move beyond strike boundaries in Short Call Butterfly. If the trader is bullish on the market’s volatility, he will implement this strategy. Here also there should be equal distance between the .. Read more..

BULL CALENDER SPREAD Vs SHORT CALL BUTTERFLY - Details

	BULL CALENDER SPREAD	SHORT CALL BUTTERFLY
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call 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.	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

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

	BULL CALENDER SPREAD	SHORT CALL 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 meant for special scenarios where you foresee a lot of volatility in the market due to election results, budget, policy change, annual result announcements etc.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Buy 2 ATM Call, Sell 1 ITM Call, Sell 1 OTM Call
Breakeven Point	Stock Price when long call value is equal to net debit.	Lower Break-even = Lower Strike Price + Net Premium, Upper Break-even = Higher Strike Price - Net Premium

BULL CALENDER SPREAD Vs SHORT CALL BUTTERFLY - Risk & Reward

	BULL CALENDER SPREAD	SHORT CALL BUTTERFLY
Maximum Profit Scenario	You have unlimited profit potential to the upside.	The profit is limited to the net premium received.
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Higher strike price- Lower Strike Price - Net Premium
Risk	Limited	Limited
Reward	Unlimited	Limited

BULL CALENDER SPREAD Vs SHORT CALL BUTTERFLY - Strategy Pros & Cons

	BULL CALENDER SPREAD	SHORT CALL BUTTERFLY
Similar Strategies	The Collar, Bull Put Spread	Long Straddle, Long Call Butterfly
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 rewards, usually offer smaller return. • Profitability depends on the significant movement of stocks and options prices.
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.	• Even if the market is highly volatile, the risk exposure remains limited. • Without any extra investment, you can receive your premium. • Able to book profits even when the price movement cannot be predicted.