Neutral strategy · Advanced
Market outlook Near the strike
Same-strike puts valued at the near-term expiry.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Use a strike below the current stock price instead of at-the-money.
Key difference: Adds a mild bearish lean — the trade benefits from a moderate decline into the strike by expiration of the front-month leg.
Best for: Traders who want time-decay income with a directional tilt.
Run a put calendar at one strike and a call calendar at another simultaneously.
Key difference: Widens the profitable range across two strikes rather than concentrating it at one.
Best for: Traders who want calendar-style income without pinpointing a single exact price.
Common questions
The near-term put decays faster (time decay accelerates as expiration nears), so selling it and buying a slower-decaying longer-dated put captures that decay differential as profit if the stock stays near the strike.
The stock sits near the strike as the front-month option expires worthless, after which the back-month long put retains most of its value and can be sold or held.
At the same strike as the current price it's essentially neutral, profiting mainly from time decay and rising implied volatility on the back-month leg rather than direction.
You're left holding the long back-month put outright, which can be closed for a profit, held as a standalone directional position, or turned into a new calendar by selling another near-term put against it.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
Every neutral structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the put calendar spread
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.