Compare Strategies
BULL CALENDER SPREAD | BULL CALENDER SPREAD | |
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About Strategy |
Bull Calendar Spread Option StrategyThis 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 |
Bull Calendar Spread Option StrategyThis 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 .. |
BULL CALENDER SPREAD Vs BULL CALENDER SPREAD - Details
BULL CALENDER SPREAD | BULL CALENDER SPREAD | |
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Market View | Bullish | Bullish |
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 | Unlimited |
Risk Profile | Limited | Limited |
Breakeven Point | Stock Price when long call value is equal to net debit. | Stock Price when long call value is equal to net debit. |
BULL CALENDER SPREAD Vs BULL CALENDER SPREAD - When & How to use ?
BULL CALENDER SPREAD | BULL CALENDER SPREAD | |
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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. | 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. |
Action | Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call | Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call |
Breakeven Point | Stock Price when long call value is equal to net debit. | Stock Price when long call value is equal to net debit. |
BULL CALENDER SPREAD Vs BULL CALENDER SPREAD - Risk & Reward
BULL CALENDER SPREAD | BULL CALENDER SPREAD | |
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Maximum Profit Scenario | You have unlimited profit potential to the upside. | You have unlimited profit potential to the upside. |
Maximum Loss Scenario | Max Loss = Premium Paid + Commissions Paid | Max Loss = Premium Paid + Commissions Paid |
Risk | Limited | Limited |
Reward | Unlimited | Unlimited |
BULL CALENDER SPREAD Vs BULL CALENDER SPREAD - Strategy Pros & Cons
BULL CALENDER SPREAD | BULL CALENDER SPREAD | |
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Similar Strategies | The Collar, Bull Put Spread | The Collar, Bull Put 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. | • Limited profit even if underlying asset rallies. • If the short call options are assigned when the underlying asset rallies then losses can be sustained. |
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. | • 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. |