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Long Put Calendar Spread for Beginners: Options Learning Center
Description
The long put calendar is a long put option spread strategy where you expect the underlying security to trade within a specific price range. The long put calendar option strategy involves selling a nearer-term expiration put and buying a longer-term expiration put at the same strike price.
The maximum loss is the difference between the premium paid for the long put and the premium received for the short put (Net Debit).
The long put calendar strategy achieves maximum profit if the underlying security is equal to the strike price at the expiration of the nearer-term short put, at which point profit will be equal to the value of the long put.
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