BULL CALENDER SPREAD	STRAP
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..	Strap Option Strategy  Strap Strategy is similar to Long Straddle, the only difference is the quantity traded. A trader will buy two Call Options and one Put Options. In this strategy, a trader is very bullish on the market and volatility on upside but wants to hedge himself in case the stock doesn’t perform as per his expectations. This strategy will make more profits compared to long straddle sin .. Read more..

BULL CALENDER SPREAD Vs STRAP - Details

	BULL CALENDER SPREAD	STRAP
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	3
Strategy Level	Beginners	Beginners
Reward Profile	Unlimited	Profit Achieved When Price of Underlying > Strike Price of Calls/Puts + (Net Premium Paid/2) OR Price of Underlying < Strike Price of Calls/Puts - Net Premium Paid
Risk Profile	Limited	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts
Breakeven Point	Stock Price when long call value is equal to net debit.	Strike Price of Calls/Puts + (Net Premium Paid/2)

BULL CALENDER SPREAD Vs STRAP - When & How to use ?

	BULL CALENDER SPREAD	STRAP
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 used when the investor is bullish on the stock and expects volatility in the near future.
Action	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call	Buy 2 ATM Call Option, Buy 1 ATM Put Option
Breakeven Point	Stock Price when long call value is equal to net debit.	Strike Price of Calls/Puts + (Net Premium Paid/2)

BULL CALENDER SPREAD Vs STRAP - Risk & Reward

	BULL CALENDER SPREAD	STRAP
Maximum Profit Scenario	You have unlimited profit potential to the upside.	UNLIMITED
Maximum Loss Scenario	Max Loss = Premium Paid + Commissions Paid	Net Premium Paid
Risk	Limited	Limited
Reward	Unlimited	Unlimited

BULL CALENDER SPREAD Vs STRAP - Strategy Pros & Cons

	BULL CALENDER SPREAD	STRAP
Similar Strategies	The Collar, Bull Put Spread	Strip, Short Put Ladder, Short Call Ladder
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.	• To generate profit, there should be significant change in share price. • Expensive strategy.
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 loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.