Calendar Spread Options Playbook

Understanding rollover and calendar spreads the coach s playbook.

Calendar spread options playbook. Because of the way these are quoted and traded calendar spreads are an easier method. But please note it is possible to use different time intervals. Build your option strategy with covered calls puts spreads and more.

For this playbook i m using the example of one month diagonal spreads. You have 2 options. For this playbook i m using the example of a one month calendar spread.

A guideline we use is within 1 strike of the calendar spread s strike price. Learn to trade options with 40 detailed options strategies across any experience level. How to calculate breakeven s the break even for a calendar spread cannot be calculated due to the different expiration cycles being used.

If you re going to use more than a one month interval between the front month and back month options you need to understand the ins and outs of rolling an option position. One of the most positive outcomes for a calendar spread is for the trade to double in price. But please note it is possible to use different time intervals.