Calendar Spread – Credit
Options strategy · Level 4 · Naked options
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Buy the near-term option and sell the longer-term one at the same strike. The protection expires first, leaving the longer-dated short option uncovered.
Where Tradecraft teaches it
Level 4 · Naked options, in the lesson “Credit calendars, reverse diagonals & short synthetics”: Structures that look hedged but aren’t where it counts, and the long/short calendar naming trap.
Related terms
- Calendar Spread – DebitSell a near-term option and buy a longer-term option at the same strike.
- Diagonal Spread – Long leg expires firstBuy a near-term option and sell a longer-term one at a different strike.
- Diagonal Spread – Short leg expires firstSell a near-term option and buy a longer-term one at a different strike — part calendar, part vertical.
- Short SyntheticSell a call and buy a put at the same strike: behaves exactly like being short 100 shares, without borrowing any.
- Short Naked CallSell a call without owning the stock or a higher call.
- Short StraddleSell an ATM call and an ATM put. Maximum theta collection — and maximum exposure to a big move.