Value-Trades

Long Put Calendar Strategy: Real Trade Example


Real Example (July 2025)

A long put calendar spread involves buying a longer-term put and selling a shorter-term put at the same strike price. It's effective when expecting neutral to slightly bearish short-term movement, with increased volatility later.
  • Stock: XYZ Corp
  • Outlook: Neutral short-term, bearish long-term
  • Setup: Buy 1 XYZ $100 Put (Oct) @ $5.20; Sell 1 XYZ $100 Put (Aug) @ $2.30
  • Net Debit: $2.90 ($290 per contract)
  • Max Loss: $290
  • Max Gain: Varies depending on timing and volatility
  • Ideal Stock Price at Aug Expiration: Around $100

Outcomes

Stock Price at Aug Expiration Short Put Value Long Put Value Total Value Profit/Loss
$95 $5.00 $5.50 $0.50 -$240
$100 $0 $3.00 $3.00 +$110
$105 $0 $1.50 $1.50 -$140

Compare With Long Call Calendar Strategy →

Learn Long Call Calendar

Advertisement


Advertisement

Advertisement

Sign Up free to view live trades and discussion forum to make more informed financial decisions. No credit card is required for sign up!
View Daily Trades
Join Discussion