BULL CALENDER SPREAD	SHORT GUTS
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 Guts Option Strategy  This strategy is implemented by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future. This strategy involves sale of 1 ITM Call Option and 1 ITM Put Option. This strategy can be called as Credit Spread since his account is credited at the time of entering in the positions. < .. Read more..

BULL CALENDER SPREAD Vs SHORT GUTS - Details

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

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

	BULL CALENDER SPREAD	SHORT GUTS
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 by a trader when he is neutral on the movements and bearish on volatility i.e. he expects the stock to be range bound in the near future.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Sell 1 ITM Call, Sell 1 ITM Put
Breakeven Point	Stock Price when long call value is equal to net debit.	Upper Breakeven Point = Net Premium Received + Strike Price of Short Call, Lower Breakeven Point = Strike Price of Short Put - Net Premium Received

BULL CALENDER SPREAD Vs SHORT GUTS - Risk & Reward

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

BULL CALENDER SPREAD Vs SHORT GUTS - Strategy Pros & Cons

	BULL CALENDER SPREAD	SHORT GUTS
Similar Strategies	The Collar, Bull Put Spread	Short Strangle (Sell Strangle), Short Straddle (Sell Straddle)
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.	• Unlimited potential loss if the underlying stock continues to move in one direction. • High margin required.
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.	• Ability to profit even when underlying asset stays stagnant. • You are already paid your full profit the moment the position is put on as this is a credit spread position. • Higher chance of ending in full profit as compared to short strangle or short straddle.