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Long Call Calendar Spread for Beginners: Options Learning Center

Run time:  13:37

Description

The long call calendar is a long call option spread strategy where you expect the underlying security to trade within a specific price range. The long call calendar option strategy involves selling a nearer-term expiration call and buying a longer-term expiration call at the same strike price.

The maximum loss is the difference between the premium paid for the long call and the premium received for the short call (Net Debit).

The long call calendar strategy achieves maximum profit if the security price is equal to the strike price at the expiration of the nearer-term short call, at which point profit will be equal to the value of the long call.

DISCLAIMER REGARDING INVESTMENT DECISIONS AND TRADING

Decisions to buy, sell, hold or trade in securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Any trading in securities or other investments involves a risk of substantial losses. The practice of “Day Trading” involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall we be liable for any loss or damage you or anyone else incurs as a result of any trading or investment activity that you or anyone else engages in based on any information or material you receive through Barchart.com or our Services.

Strategy At A Glance

Neutral
Little or no price change.
Limited Profit
Profit is limited.
Limited Loss
Losses are limited.