Double Calendar Calculator
A double calendar sells a near-term put and call and buys longer-dated put and call at the same strikes — a put calendar below the price and a call calendar above it. It builds a wide profit "tent" that pays off if the stock stays between the two strikes while the near-term options decay.
Interactive calculator
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Key characteristics
- A put calendar below + a call calendar above: sell near-term, buy longer-dated.
- Profits if the stock stays between the two strikes into the near expiration.
- Wider profit range than a single calendar, and long back-month volatility.
- Net debit; defined risk, with the loss limited to what you paid.
When to use a double calendar
Use it when you expect a quiet, range-bound stock over the near term but want a wider profit zone than a single calendar gives. Placing the two strikes around the current price spreads the "tent" so the position tolerates more drift before it loses.
Because you are long the back-month options, the trade also benefits from a rise in implied volatility — useful ahead of a slow build-up to an event, when near-term decay works for you and back-month vol can expand.
Risks and management
The enemies are a big move and a volatility crush. If the stock runs past either strike, or implied volatility falls sharply, the back-month options lose value and the position can give back its debit — the maximum loss.
Because the legs have different expirations, the payoff at the near expiration is a curved tent, not straight lines. Many traders close or roll the near-term options as they decay, then re-sell against the back-month longs.
Calculate it live
Use the free OptionProfit Double Calendar calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
- Two calendars — a put below and a call above — for a wide income tent.
- Profits on a range-bound stock as near-term options decay.
- Long back-month volatility; helped by a rise in implied volatility.
- Defined risk: the most you can lose is the net debit paid.
Frequently asked questions
How is a double calendar different from a double diagonal?
A double calendar uses the same strike for the near and far option on each side; a double diagonal uses different strikes, adding a directional tilt. The calendar version is more symmetric.
Does it like high or low volatility?
It is long back-month volatility, so it benefits when implied volatility rises and is hurt by a volatility crush. It also needs the stock to stay calm in the near term.
What is my maximum loss?
The net debit you pay. The risk is defined, realised if the stock makes a big move past either strike or if volatility collapses.
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