Strategy lesson · Spreads · neutral
Put Calendar Spread Explained
Put calendar: short near-term put + long longer-dated put, same strike. Neutral pin-style structure with multi-expiry complexity.
How a Put Calendar Spread is built
Sell front put, buy back-month put at the same strike.
This is a multi-expiry strategy — front-month and back-month legs interact. Use the multi-expiry heatmap, not expiration-only thinking alone.
- Leg 1: sell put · strike template 100 · premium ~2.5 · 1 contract(s) · 30 DTE
- Leg 2: buy put · strike template 100 · premium ~4.5 · 1 contract(s) · 60 DTE
Risk & reward snapshot
| Market bias | neutral |
|---|---|
| Max profit | Often near pin at front expiry; path-dependent. |
| Max loss | Usually related to debit and residual long put risk after front expiry. |
| Breakeven | Date-dependent; model on heatmap. |
Figures are conceptual for the classic structure. Your actual premiums, strikes, and fees change the numbers — confirm on the calculator.
When traders use it
- Expect consolidation into the short put’s expiration.
Key risks
- Gaps through the strike and vol changes can dominate theta plans.
Practical tips
- Compare to a put diagonal if you want a directional tilt on strikes.
Practice on the calculator
- Open the Put Calendar Spread calculator.
- Load a symbol and option chain; fill realistic mid premiums.
- Review max profit, max loss, breakevens, and the date × price heatmap.
- Change strikes and DTE to see how risk shape shifts.
FAQ
What is a Put Calendar Spread?
Put calendar: short near-term put + long longer-dated put, same strike. Neutral pin-style structure with multi-expiry complexity.
What is the max loss on a Put Calendar Spread?
Usually related to debit and residual long put risk after front expiry.
When should I use a Put Calendar Spread?
Expect consolidation into the short put’s expiration.