---
name: skill-calendar-spread
description: Same strike, different expiries. Use when the idea is front-month decay against a longer-dated option.
skill_family: options-strategy
last_updated: 2026-09-30
---

# Calendar spread

## When to use

- The thesis is time passing near one strike, not a large directional move.
- Both options are the same type (both calls or both puts) and the same strike.

## Setup

- Buy the longer-dated option. Sell the shorter-dated option. Same strike.
- Usually a net debit. Illustrative max risk is that debit.
- The target zone is around the shared strike into the front expiry.

## Rules of thumb

- Say whether volatility rising or falling helps the back month.
- The short leg needs a decision in its expiry week: expire, close, or roll.
- After the front expiry, what remains is the long option alone. Say so.

## Pitfalls

- A volatility drop that cheapens the long leg faster than the short premium earned.
- Price leaving the strike so both legs work against the pin thesis.
- Early assignment on the short option before the front expiry.

## Disclaimer

Options involve risks and are not suitable for everyone. Read *Characteristics and Risks of Standardized Options* at OptionsEducation.org, or from your broker or the Options Clearing Corporation, before using this structure. Examples omit commissions, fees, margin, interest, and taxes. This is a structured playbook for education. It is not a signal, a recommendation, a solicitation, or a broker order.