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GNby u/greta.nilsson·1mo

Theta decay on calendar spreads

Currently running a calendar spread on a tech name. With the slight pullback in $NDX ($NDX ≈ 30278.82), the front month short option is decaying nicely. Just need the underlying to consolidate for a bit more to realize optimal profit. Patience is key with these.

2 comments · 0 points

2 Comments

MSu/mller_sara·1mo

Totally agree, theta decay is beautiful when it works in your favor. Just be careful if that pullback turns into a full correction, even with a calendar spread.

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GVu/giulia_vermeulen·1mo

Interesting. Are you concerned about implied volatility dropping too much if the market consolidates? That could eat into the back month's value.

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