Long Calendar Put Spread
The all-puts version of the calendar — sell 1 near-dated put, buy 1 longer-dated put at the same strike. Same profile as the Long Calendar Call.
Profit / Loss Diagram
Long Calendar Put at the short expiration
What is this strategy?
The Long Calendar Put Spread is functionally equivalent to the Long Calendar Call but built with puts. Construction: sell 1 near-dated put, buy 1 longer-dated put at the same strike. Exactly the same P/L profile — the choice comes down to liquidity and operational preference.
For underlyings where puts carry better liquidity, such as large indices, the Long Calendar Put can be more efficient. In individual equities, calls are often the better side.
Same use as the Long Calendar Call: positive theta in sideways markets with an expectation of IV expansion.
Construction
| Action | Instrument | Strike | Expiration | Example |
|---|---|---|---|---|
| SELL | 1 Put | ATM (same strike) | Front (30 DTE) | -1 SPY May 450 Put |
| BUY | 1 Put | ATM (same strike) | Back (60-90 DTE) | +1 SPY Jul 450 Put |
Example
SPY at $450. Long Calendar Put at the 450 strike, May/July.
- Short May 450 Put +$300 premium received
- Long Jul 450 Put −$800 premium paid
- Net Debit $500
- Expected Gain (if SPY = $450 at the short expiration) +$200 to $300 (the July put retains $700-800 and the May put expires worthless)
- Maximum Loss $500 (the debit) on an extreme move
The Greeks
Same as the Long Calendar Call.
Same.
Same.
Same.
Position Management
- 01 Same as the Long Calendar Call Close at the short expiration, with the option of rolling.