Calendar Spread
Sell near-term option, buy longer-term option
Positions in Chart: Sell near-term 25800 CE, Buy far-term 25800 CE. Spot price: 25800
Setup
Sell near-term ATM Call + Buy longer-term ATM Call
When to Use
- Profit from time decay and volatility increase
Market Outlook
Risk & Reward
Strategy Details
Description
A calendar spread involves selling a short-term option and buying a longer-term option at the same strike. You profit from time decay of the short option and potential volatility increase. Best when underlying stays near the strike price
Example
If NIFTY is at ₹25,800, set up: Sell near-term ATM Call + Buy longer-term ATM Call.
This information is for educational purposes only and should not be considered as financial advice. Always consult with a qualified financial advisor before making investment decisions. Data is constructed and is not actual. Calculations may have errors.
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