---
title: "Calendar Spread — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Volatility"
outlook: "Neutral / range-bound"
complexity: "advanced"
risk: "defined"
slug: "calendar-spread"
url: "https://learn-derivatives.tapetide.com/strategies/calendar-spread"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/calendar-spread.md"
source: "DeltaDesk by Tapetide"
---

# Calendar Spread

> **In plain English:** A bet on time, not direction. You sell a near-expiry option and buy a far-expiry one at the same strike. The near one decays faster, so you profit from that difference if the price sits still.

**Category:** Volatility · **Market view:** Neutral / range-bound · **Complexity:** advanced · **Risk:** Defined

## Structure

- Sell ATM call
- Buy ATM call

## Summary

Sell a near-expiry option and buy a far-expiry option at the same strike — profit from faster near-term decay.

## When to use it

Neutral near term, expecting the front month to decay faster than the back month. Long vega.

## Profit & loss

- **Max profit:** Maximised if the price sits at the strike at front-month expiry.
- **Max loss:** Limited to the net debit paid.

## Net Greeks profile

Positive theta (net), positive vega (the back month dominates).

## Margin

Margin-intensive (you sell options).

## Common mistakes

- Ignoring that a big move hurts both legs.
- Not accounting for term-structure shifts.

## India example

Sell a weekly ATM NIFTY call, buy a monthly ATM call (same strike).

---

**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*