Build a Double Calendar Strategy

What is a double calendar?

NeutralLimited ProfitLimited Loss

A expert strategy that is the combination of a calendar call spread and a calendar put spread.

As time passes, the profitability range will increase.

ABProfitLossStock Price
  • Sell a put at strike A
  • Buy a put at strike A (further expiration)
  • Sell a call at strike B
  • Buy a call at strike B (further expiration)