Sell a near-term call and buy a longer-term call at the same OTM strike. You're betting time decay hits your short call faster than your long call, while positioning for the stock to drift up toward that strike over time.
Bullish Calendar Spread is a uptrend (bullish) options trading strategy (2 legs) engineered for limited risk profiles in low iv expecting iv expansion market environments.
Value of Long Call at Near Expiration - Net Debit
Net Debit Paid
Dynamic (Depends on implied volatility)
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| SELL | CALL | OTM Strike (Near Term) | 1x |
| BUY | CALL | OTM Strike (Long Term) | 1x |
You're bullish, but you don't want to pay full price for a naked call and you're okay capping your profit in exchange for cheaper entry. Buy one call, sell a higher one to fund it — simple as that.
🔼 Uptrend (Bullish)This is the trade for when you think a stock is about to make an explosive move up — not just drift higher. Sell one call near the money, buy two further out. Cheap or even free to put on, and it pays big if the move actually happens.
🔼 Uptrend (Bullish)The first trade every options trader learns, and honestly still one of the best when you're genuinely convinced a stock is going up. You risk only what you pay, and there's no ceiling on the upside.
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