Value-Trades

Long Call Calendar Strategy: Real Trade Example


Real Example (July 2025)

A long call calendar spread involves buying a longer-term call and selling a shorter-term call at the same strike. It's best used when expecting sideways movement in the near term and a larger move later.
  • Stock: XYZ Corp
  • Outlook: Neutral short-term, bullish long-term
  • Setup: Buy 1 XYZ $100 Call (Oct) @ $5.50; Sell 1 XYZ $100 Call (Aug) @ $2.50
  • Net Debit: $3.00 ($300 per contract)
  • Max Loss: $300
  • Max Gain: Varies based on implied volatility and timing
  • Ideal Stock Price at Aug Expiration: Around $100

Outcomes

Stock Price at Aug Expiration Short Call Value Long Call Value Total Value Profit/Loss
$95 $0 $3.00 $3.00 Break-even
$100 $0 $4.50 $4.50 +$150
$105 $5.00 $6.00 $1.00 -$200

Compare With Diagonal Call Spread →

Learn Diagonal Spread

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