Calendar Spread (Time Spread)
Time-based strategy profiting from differential time decay.
Intermediate
Market Outlook
neutral
Family
calendar
Capital Req
medium
Risk Profile
medium
Strategy Overview
Key characteristics and when to use
Structure
Sell Near-Term + Buy Longer-Term (Same Strike)
Greek Profile
Delta neutral, positive theta, positive vega
Characteristics
DebitNeutralIntermediateTime Decay
Profit & Loss Formulas
Mathematical breakdown
Max Profit
Variable (depends on remaining time value)
Max Loss
Net debit paid
Breakeven
Variable (depends on volatility and time)