calendar put spread calculator

Calendar Put Spread Calculator

The Calendar Put Spread Calculator can be used to chart theoretical profit and loss (P&L) for a calendar put position. Clicking on the chart icon on the Calendar Put Spread screener loads the strategy calculator with the selected calendar put.

A calendar put spread consists of two puts with the same strike price but different expirations. The long put expires after the short put. The position will profit if the underlying security price does not change much. The value of the short leg will decay faster than the value of long leg. The long leg can be sold when the short leg expires.

In this example, the green triangles show the break-even points as of August 20, when the near term leg expires. General Help with the calculator can be found here.