Calendar Bull Call – The Option Strategy Desk Reference

Calendar Bull Call

Strategy: Sell n Calls, Expire 56 DTE

Buy n Calls, Lower Strike, One Expiry Later

Example:

Price Chart: Uptrending

Current IV%: 20%

IV Rank: 30

Trade: Buy n call options, one expiration later; sell n call options, higher strike.

Typical Strike Deltas:

Long Call 0.55 to 0.45, one expiration later

Short Call 0.25

Goals: Strong price rally that moves long calls ITM for profit; OTM short calls used to reduce entry cost.

Manage: If possible, roll short calls once. Otherwise, close the trade or let it expire worthless.

Profit: Close when profit is at or more than 30 percent.

Loss: Close for an 8 percent loss.