> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/option-strategies/calendar.md).

# Calendar

## Long Call Calendar

{% hint style="info" %}
A Long Call Calendar is done with the purchase of a further dated Call option and sale of a nearer dated Call option, both which have the same strike price.
{% endhint %}

**Payoff Diagram:**

![Long Call Calendar Spread with OTM Calls](https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2F3T8ZnQ6qXnCZzcbvB0vM%2FLC%20Calendar.png?alt=media\&token=f673416f-ed42-4059-bbcb-c5c6e725fb03)

**Direction Assumption:** Neutral-Bullish

**At Near-Dated Expiration,**

**Maximum Profit:** Credit received from selling Call + Profit of Long Call\
Maximum profit at the near-dated expiration is realized when the underlying is at the near dated Short Call strike price.\
\
**Maximum Loss:** Unlimited

**At Far-Dated Expiration,**

**Maximum Profit:** Unlimited\
\
**Maximum Loss:** Limited to the debit paid for the Long Call.\
Maximum loss at the far-dated expiration is realized if the underlying moves below the Long Call strike price.

**Breakeven Price at Far-Dated Expiration:** Equal to the Long Call Strike Price + Premium paid

**Theta:** Passage of Time -> Positive Effect\
The net effect of time decay is positive. It will erode the value of the near dated Short Call faster than the far dated Long Call.

**Volatility:** Neutral

## Reverse**/ Short** Call Calendar

{% hint style="info" %}
A Short Call Calendar is done with the sale of a further dated Call option and purchase of a nearer dated Call option, both which have the same strike price.
{% endhint %}

**Payoff Diagram:**

![Short Call Calendar Spread with OTM Calls](https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FGp7ecXBYU7RYNuBDE9Wi%2FSC%20Calendar.png?alt=media\&token=dbc70733-bd11-4960-9be0-883a9704469c)

**Direction Assumption:** Neutral-Bearish

**At Near-Dated Expiration,**

**Maximum Profit:** Limited to debit paid\
\
**Maximum Loss:** Limited to the debit paid for the near dated Long Call + Time decay of far-dated Short Call\
Maximum loss at the near-dated expiration is realized when the underlying is at the near dated Long Call strike price.\
\
**At Far-Dated Expiration,**

**Maximum Profit:** Limited to credit received from the further dated Short Call\
\
**Maximum Loss:** Unlimited<br>

**Breakeven Price at Far-Dated Expiration:** Equal to the Short Call Strike Price + Short Call credit received

**Theta:** Passage of Time -> Negative Effect\
The net effect of time decay is negative. It will erode the value of the near dated Long Call faster than the far dated Short Call.

**Volatility:** Neutral

## Long Put Calendar

{% hint style="info" %}
A Long Put Calendar is done with the purchase of a further dated Put option and sale of a nearer dated Put option, both which have the same strike price.
{% endhint %}

**Payoff Diagram:**

![Long Put Calendar Spread with OTM Puts](https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2Fizh97N1OgAGGLRaoVmvb%2FLP%20Calendar.png?alt=media\&token=81e85b8f-34b7-404d-afca-cb60fe6bfa44)

**Direction Assumption:** Neutral-Bearish

**At Near-Dated Expiration,**

**Maximum Profit:** Credit received from selling Put + Profit of Long Put\
Maximum profit at the near-dated expiration is realized when the underlying is at the Short Put strike price.\
\
**Maximum Loss at Near-Dated Expiration::** Unlimited

**At Far-Dated Expiration,**

**Maximum Profit:** Unlimited\
\
**Maximum Loss:** Limited to the debit paid for the Long Put.\
Maximum loss at the far-dated expiration is realized if the underlying moves below the Long Put strike price.

**Breakeven Price at Far-Dated Expiration:** Equal to the Long Put Strike Price + Premium paid

**Theta:** Passage of Time -> Positive Effect\
The net effect of time decay is positive. It will erode the value of the near dated Short Put in a bigger extent than the far dated Long Put.

**Volatility:** Positive Effect

## Revers&#x65;**/ Short** Put Calendar

{% hint style="info" %}
A Short Put Calendar is done with the sale of a further dated Put option and purchase of a nearer dated Put option, both which have the same strike price.
{% endhint %}

**Payoff Diagram:**

![Short Put Calendar Spread with OTM Puts](https://1780133611-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5XlTHrw6jWA1Duk8yCcW%2Fuploads%2FBAlsS1r7R1z7TbAkEIqh%2FSP%20Calendar.png?alt=media\&token=5a6375fa-b688-4490-80f3-7bc0d148a890)

**Direction Assumption:** Neutral-Bullish

**At Near-Dated Expiration,**

**Maximum Profit:** Limited to debit paid\
\
**Maximum Loss:** Limited to the debit paid for the near dated Long Put + Time decay of far-dated Short Put\
Maximum loss at the near-dated expiration is realized when the underlying is at the near dated Long Put strike price.\
\
**At Far-Dated Expiration,**

**Maximum Profit:** Limited to credit received from the further dated Short Put\
\
**Maximum Loss:** Unlimited<br>

**Breakeven Price at Far-Dated Expiration:** Equal to the Short Put Strike Price - Short Put credit received

**Theta:** Passage of Time -> Negative Effect\
The net effect of time decay is negative. It will erode the value of the near dated Long Put faster than the far dated Short Put.

**Volatility:** Neutral