Options Playbook Radio 36: Long Calendar Spreads

Published: Nov. 7, 2014, 1:13 a.m.

Options Playbook Radio 36: Long Calendar Spreads

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In this episode, we\u2019re talking about long calendar spreads, from the call side. If you have the Playbook, we\u2019re on page 90. Or, you can find what we\u2019re discussing on OptionsPlaybook.com.

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Today, Brian discusses:

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  • What is a calendar spread?
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  • Looking at accelerated time decay, and why does it happen?
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  • At-the-money strikes, and why they are used in calendar spreads
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  • Front and back month
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  • How to construct a calendar spread
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  • Why do a calendar spread?
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  • Time decay review, and how it impacts the value of your option
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  • Maximum profit and loss
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  • Time value review, and what happens when it goes away?
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  • And more\u2026
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