Calendar Call Spread - Components
Buy At The Money (ATM) LEAPS call options and then sell ATM near term calls against the LEAP call options.
Buy Long Term ATM Call + Sell Near Term ATM Call
Calendar Call Spread - Expectation
Stagnant & Moderate Up
Calendar Call Spread - Risk / Reward
Maximum Profit: Limited
Maximum Loss: Limited
Calendar Call Spread - Breakeven Point
Stock Price when long call value is equal to net debit (calculated using Black Scholes Model)
Copyright © 2007 www.OptionTradingPedia.com
Note : You may freely print and distribute this page. Please do not alter any of its contents.
This chart is for general reference only and not to be taken as an invitation or instruction to trade. Best printed in
color.
|