Calendar Spreads

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Calendar Spreads

A strategy that increases the leverage and profits of a covered call.[/vc_custom_heading][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”0″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”1″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ position_horizontal=”left” gutter_size=”3″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]https://vimeo.com/498455480

[/vc_column_text][vc_column_text text_lead=”yes”]https://vimeo.com/498461268[/vc_column_text][/vc_column][/vc_row][vc_row row_height_percent=”0″ override_padding=”yes” h_padding=”2″ top_padding=”2″ bottom_padding=”2″ overlay_alpha=”50″ gutter_size=”0″ column_width_percent=”100″ shift_y=”0″ z_index=”0″][vc_column column_width_percent=”100″ gutter_size=”0″ override_padding=”yes” column_padding=”1″ overlay_alpha=”50″ shift_x=”0″ shift_y=”0″ shift_y_down=”0″ z_index=”0″ medium_width=”0″ mobile_width=”0″ width=”1/1″][vc_column_text text_lead=”yes”]

Calendar Spreads

Calendar spreads are a combination of a buying a call to open a position and selling another call against that position.  In other words, it combines a long call with a short call position.  This is a covered call strategy where the underlying is a call option and the option sold is also a call option.  As long as the strike price of the option purchase is equal to or lower than the strike price of the option sold, it’s a covered call position.

Calendar spreads can be used to leverage an investment account; putting it to work harder.  The call option purchased costs a fraction of the price of purchasing the underlying so the premium received from the call sold is correspondingly higher as a percentage.

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