Overview

A calendar spread is an options strategy established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates.In a typical calendar spread, one would buy a longer-term contract and go short a nearer-term option with the same strike price. A calendar spread is most profitable when the underlying asset does not make any significant moves in either direction until after the near-month option expires. Thus taking advantage of the exponential time decay on the nearer month option contract.The purpose of the trade is to profit from the passage of time and/or an increase in implied volatility in a directionally neutral strategy.In this course you'll learn-The rationale, outlook, net position, effects of time decay, appropriate time to trade, selecting the stock, selecting the option, risk profile, advantages/ disadvantages, exiting the position etc. for a calendar spread. -The steps in and out to be taken while creating a the time spread. -How to execute a calendar spread with the correct technique.- How to read the pay off chart correctly by using tools available online. -How to adjust the trade when it goes against you. -Live examples of trades on Indian stocks. Looking forward to seeing you in this exciting journey and helping you achieve your financial dreams.

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