{"id":7811,"date":"2014-12-03T14:22:09","date_gmt":"2014-12-03T21:22:09","guid":{"rendered":"https:\/\/www.optionsanimal.com\/?p=7811"},"modified":"2022-04-25T12:24:47","modified_gmt":"2022-04-25T18:24:47","slug":"what-is-a-call-calendar-spread","status":"publish","type":"post","link":"https:\/\/www.optionsanimal.com\/what-is-a-call-calendar-spread\/","title":{"rendered":"What is a call calendar spread?"},"content":{"rendered":"<!--presto-player:video_id=80--><figure class=\"wp-block-video presto-block-video  presto-provider-bunny\" style=\"--plyr-color-main: var(--presto-player-highlight-color, #71a341); --plyr-captions-background: #000000; --presto-player-logo-width: 150px; \">\n    <presto-player  id=\"presto-player-1\" src=\"https:\/\/vz-1992c6e9-614.b-cdn.net\/c7b50a93-2be5-42ba-b9bf-030a822ba058\/playlist.m3u8\" media-title=\"what is a call calendar spread\" css=\"\" class=\"presto-video-id-80 presto-preset-id-5 skin-default caption-style-default\" skin=\"default\" 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16:13:11\",\"updated_at\":\"2022-03-18 17:01:46\",\"deleted_at\":\"\",\"reset_on_end\":false,\"email_collection\":{\"enabled\":false,\"behavior\":\"pause\",\"percentage\":0,\"allow_skip\":false,\"provider\":\"\",\"provider_list\":\"\",\"provider_tag\":\"\",\"border_radius\":0,\"headline\":\"\",\"bottom_text\":\"\",\"button_text\":\"\",\"button_color\":\"\",\"button_text_color\":\"\"},\"action_bar\":{\"enabled\":false,\"percentage_start\":0,\"text\":\"Like this?\",\"background_color\":\"\",\"button_type\":\"custom\",\"button_count\":false,\"button_text\":\"Click Here\",\"button_radius\":0,\"button_color\":\"\",\"button_text_color\":\"\",\"button_link\":{\"id\":\"\",\"url\":\"\",\"type\":\"\",\"opensInNewTab\":false}},\"captions_enabled\":false,\"sticky_scroll_position\":\"\",\"cta\":{\"enabled\":false,\"percentage\":100,\"show_rewatch\":true,\"show_skip\":true,\"headline\":\"Want to learn more?\",\"bottom_text\":\"\",\"show_button\":true,\"button_text\":\"Click 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{\"id\":80,\"src\":\"https:\\\/\\\/vz-1992c6e9-614.b-cdn.net\\\/c7b50a93-2be5-42ba-b9bf-030a822ba058\\\/playlist.m3u8\",\"preset\":5,\"thumbnail\":\"https:\\\/\\\/vz-1992c6e9-614.b-cdn.net\\\/c7b50a93-2be5-42ba-b9bf-030a822ba058\\\/thumbnail.jpg\",\"preview\":\"https:\\\/\\\/vz-1992c6e9-614.b-cdn.net\\\/c7b50a93-2be5-42ba-b9bf-030a822ba058\\\/preview.webp\",\"visibility\":\"public\",\"color\":\"#00b3ff\",\"mutedPreview\":{\"enabled\":false,\"captions\":false},\"mutedOverlay\":{\"enabled\":false,\"src\":\"\",\"width\":200,\"focalPoint\":{\"x\":0.5,\"y\":0.5}},\"mutedOverlayType\":\"text\",\"mutedOverlayText\":\"Click to play\",\"mutedOverlayImageWidth\":200,\"playsInline\":true,\"chapters\":[],\"overlays\":[],\"tracks\":[],\"title\":\"what is a call calendar spread\"};\n                                                                                            player.skin = \"default\";\n                                                                player.analytics = true;\n           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Casey Jensen here at OptionsANIMAL. Now we&#8217;re discussing a call calendar, is also known as horizontal spread. You can also say that diagonal spread, that&#8217;s also known as a call calendar. We&#8217;re going to talk about the horizontal spread call calendar. So here&#8217;s how it works.<\/p>\n\n\n\n<p>If a stock&#8217;s trading at 38, the primary instrument in this trade you&#8217;re going to buy a call option. So let&#8217;s say that in this case, we&#8217;re looking at an August options chain. We&#8217;re actually going to go out to maybe October to buy our call option. So let&#8217;s say right here, long call, that&#8217;s short for just buying a call option, strike price 40. October, 90 days to expire. Maybe it cost me $2 a share. That&#8217;s the primary instrument. When we buy call options, we want stocks to go up, and that&#8217;s how we make money.<\/p>\n\n\n\n<p>Now let&#8217;s look at the August options chain. Now what I&#8217;ll do is I&#8217;ll sell as a hedge, same strike price, 40. Again, my calls are over here on the left. We always sell at the bid price, so I bring in 80 cents. So go down here to the bottom, short call now. Strike price 40, now in the month of August, 30 days to expire. I get paid 80 cents. So what that means now is my risk is $1.20, that&#8217;s the most I can lose in this trade, so it hedges your risk. My reward is unlimited, one of the reasons I love a call calendar. So if you&#8217;re looking for aggressive growth, this is a great strategy.<\/p>\n\n\n\n<p>Now, ideally with this strategy what you&#8217;d like is for a stock, in the short term the next 30 days, to stay stagnant. That way your short option will expire, you&#8217;ll keep that 80 cents. Then after that, you&#8217;d like the stock to run up, and that way your call option that you purchased will make a nice profit. Now depending on how this plays out, you might just as soon as this expires, sell this back and even if you take a little bit of a loss on the call that you purchased, as long as it&#8217;s not greater than 80 cents, you&#8217;re going to come away with a profit.<\/p>\n\n\n\n<p>So, really good strategy, again, that&#8217;s a call calendar. This is a horizontal spread. The difference between a horizontal and a diagonal, the diagonal, all you&#8217;re going to do is sell different strike prices in different months. So maybe in a future video, we will discuss that as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Video Transcription Hello again. Casey Jensen here at OptionsANIMAL. Now we&#8217;re discussing a call calendar, is also known as horizontal spread. You can also say that diagonal spread, that&#8217;s also known as a call calendar. We&#8217;re going to talk about the horizontal spread call calendar. So here&#8217;s how it works. If a stock&#8217;s trading at [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":10383,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"plain-container","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/posts\/7811"}],"collection":[{"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/comments?post=7811"}],"version-history":[{"count":1,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/posts\/7811\/revisions"}],"predecessor-version":[{"id":11519,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/posts\/7811\/revisions\/11519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/media\/10383"}],"wp:attachment":[{"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/media?parent=7811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/categories?post=7811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.optionsanimal.com\/wp-json\/wp\/v2\/tags?post=7811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}