COVERED CALL	BULL CALENDER SPREAD
About Strategy	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 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 Vs BULL CALENDER SPREAD - Details

	COVERED CALL	BULL CALENDER SPREAD
Market View	Bullish	Bullish
Type (CE/PE)	CE (Call Option)	CE (Call Option) + PE (Put Option)
Number Of Positions	2	2
Strategy Level	Advance	Beginners
Reward Profile	Limited	Unlimited
Risk Profile	Unlimited	Limited
Breakeven Point	Purchase Price of Underlying- Premium Received	Stock Price when long call value is equal to net debit.

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

	COVERED CALL	BULL CALENDER SPREAD
Market View	Bullish	Bullish
When to use?	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.	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	(Buy Underlying) (Sell OTM Call Option)	Sell 1 Near-Term OTM Call, Buy 1 Long-Term OTM Call
Breakeven Point	Purchase Price of Underlying- Premium Received	Stock Price when long call value is equal to net debit.

COVERED CALL Vs BULL CALENDER SPREAD - Risk & Reward

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

COVERED CALL Vs BULL CALENDER SPREAD - Strategy Pros & Cons

	COVERED CALL	BULL CALENDER SPREAD
Similar Strategies	Bull Call Spread	The Collar, Bull Put Spread
Disadvantage	• Unlimited risk, limited reward. • Inability to earn interest on the proceed used to buy the underlying stock.	• 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	• 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.	• 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.