Calendar Spread
A calendar spread combines two options at the same strike but two different expiration dates — one sold, one bought — to profit from the difference in how quickly each one loses time value.
Illustrative — Valued at the Near Expiration
Calendar spread — the near-dated leg is at expiration; the farther-dated leg still holds time value, priced theoretically.
Illustrative example — not live market data.
Requires Two Expiration Dates
This structure only works with two different expiration dates, so it isn't a one-click preset in OptionLab today. Build it in Manual Market instead, where every leg gets its own expiration date. US and Israel market builders currently use one shared expiration for the whole position.
Related Strategies
How It Works
A common calendar spread sells a near-dated option and buys a farther-dated option at the same strike — though the same idea works in the other direction, or with puts instead of calls, depending on the outlook. At the near option's expiration, it settles at intrinsic value while the farther-dated option still has time remaining, so its value depends on where the underlying is trading relative to the shared strike.
This is not a one-click preset in OptionLab today — it's built by placing two legs with different expiration dates, which requires Manual Market (see the callout above).
Build a Calendar Spread in Manual Market
Add two option legs at the same strike, then give each one its own expiration date — one near, one farther out. OptionLab values the farther-dated leg theoretically and shows you the resulting payoff, breakeven points, and maximum profit and maximum loss.
Open Manual Market