BULL CALENDER SPREAD	SHORT STRANGLE
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 Strangle Option Strategy  This strategy is similar to Short Straddle; the only difference is of the strike prices at which the positions are built. Short Strangle involves selling of one OTM Call Option and selling of one OTM Put Option, of the same expiry date and same underlying asset. Here the probability of making profits is more as there is a spread between the two strike prices, and if .. Read more..

BULL CALENDER SPREAD Vs SHORT STRANGLE - Details

	BULL CALENDER SPREAD	SHORT STRANGLE
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	Advance
Reward Profile	Unlimited	Limited
Risk Profile	Limited	Unlimited
Breakeven Point	Stock Price when long call value is equal to net debit.	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

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

	BULL CALENDER SPREAD	SHORT STRANGLE
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 perfect in a neutral market scenario when the underlying is expected to be less volatile.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Sell OTM Call, Sell OTM Put
Breakeven Point	Stock Price when long call value is equal to net debit.	Lower Break-even = Strike Price of Put - Net Premium, Upper Break-even = Strike Price of Call+ Net Premium

BULL CALENDER SPREAD Vs SHORT STRANGLE - Risk & Reward

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

BULL CALENDER SPREAD Vs SHORT STRANGLE - Strategy Pros & Cons

	BULL CALENDER SPREAD	SHORT STRANGLE
Similar Strategies	The Collar, Bull Put Spread	Short Straddle, Long Strangle
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 loss is associated with this strategy, not recommended for beginners. • Limited reward amount.
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.	• Higher chance of profitability due to selling of OTM options. • Advantage from double time decay and a contraction in volatility. • Traders can book profit when underlying asset stays within a tight trading range.