STRAP	NEUTRAL CALENDAR SPREAD
About Strategy	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..	Neutral Calendar Spread Option strategy  This strategy is implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option, hence reducing the cost of purchase, with the same strike price of the same underlying asset. This strategy is used when the trader wants to make money from the .. Read more..

STRAP Vs NEUTRAL CALENDAR SPREAD - Details

	STRAP	NEUTRAL CALENDAR SPREAD
Market View	Neutral	Neutral
Type (CE/PE)	CE (Call Option) + PE (Put Option)	CE (Call Option)
Number Of Positions	3	2
Strategy Level	Beginners	Beginners
Reward Profile	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	Limited
Risk Profile	Max Loss Occurs When Price of Underlying = Strike Price of Calls/Puts	Limited
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	-

STRAP Vs NEUTRAL CALENDAR SPREAD - When & How to use ?

	STRAP	NEUTRAL CALENDAR SPREAD
Market View	Neutral	Neutral
When to use?	This strategy is used when the investor is bullish on the stock and expects volatility in the near future.	This strategy is implemented if the trader is neutral in the near future for say 2 months or so. This strategy involves writing of Near Month 1 ATM Call Option and buying 1 Mid Month ATM Call Option.
Action	Buy 2 ATM Call Option, Buy 1 ATM Put Option	Sell 1 Near-Term ATM Call, Buy 1 Long-Term ATM Call
Breakeven Point	Strike Price of Calls/Puts + (Net Premium Paid/2)	-

STRAP Vs NEUTRAL CALENDAR SPREAD - Risk & Reward

	STRAP	NEUTRAL CALENDAR SPREAD
Maximum Profit Scenario	UNLIMITED	Maximum Profit Limited When underlying stock price remains unchanged on expiration of the near month options.
Maximum Loss Scenario	Net Premium Paid	It occurs when the stock price goes down and stays down until expiration of the longer term options.
Risk	Limited	Limited
Reward	Unlimited	Limited

STRAP Vs NEUTRAL CALENDAR SPREAD - Strategy Pros & Cons

	STRAP	NEUTRAL CALENDAR SPREAD
Similar Strategies	Strip, Short Put Ladder, Short Call Ladder	Long Put Butterfly, Iron Butterfly
Disadvantage	• To generate profit, there should be significant change in share price. • Expensive strategy.	• Lower profitability • Must have enough experience.
Advantages	• Limited loss. • If share prices are moving then traders can book unlimited profit. • A trader can still book profit if the underlying falls substantially.	• Almost zero margin required. • Ability to profit from time decay, limited risk. • This strategy allows you to transform position into long position.