BULL CALENDER SPREAD	COVERED CALL
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 Call Option Strategy Mr. X owns Reliance Shares and expects the price to rise in the near future. Mr. X is entitled to receive dividends for the shares he hold in cash market. Covered Call Strategy involves selling of OTM Call Option of the same underlying asset. The OTM Call Option Strike Price will generally be the price, where Mr. X will look to get out o .. Read more..

BULL CALENDER SPREAD Vs COVERED CALL - Details

	BULL CALENDER SPREAD	COVERED CALL
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call 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.	Purchase Price of Underlying- Premium Received

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

	BULL CALENDER SPREAD	COVERED CALL
Market View	Bullish	Bullish
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.	An investor has a short term neutral view on the asset and for this reason holds the asset long and has a short position to generate income.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	(Buy Underlying) (Sell OTM Call Option)
Breakeven Point	Stock Price when long call value is equal to net debit.	Purchase Price of Underlying- Premium Received

BULL CALENDER SPREAD Vs COVERED CALL - Risk & Reward

	BULL CALENDER SPREAD	COVERED CALL
Maximum Profit Scenario	You have unlimited profit potential to the upside.	[Call Strike Price - Stock Price Paid] + Premium Received
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Purchase Price of Underlying - Price of Underlying) + Premium Received
Risk	Limited	Unlimited
Reward	Unlimited	Limited

BULL CALENDER SPREAD Vs COVERED CALL - Strategy Pros & Cons

	BULL CALENDER SPREAD	COVERED CALL
Similar Strategies	The Collar, Bull Put Spread	Bull 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.	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.
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.	• Profit from option premium, rise in the underlying stock and dividends on the stock. • Allows you to generate income from your holding. • Profit when underlying stock price rise, move sideways or marginal fall.