Paid Daily · Resources · Ask Plutus
Dr. Jim Schultz Says Most People Put Calendar Spreads on the Wrong Stocks
NowPress play to follow along0:00 / 10:13
Chapters6 segments · tap to seek
ticker lesson
Breakdown
0:00lesson
Calendar spreads basics
- Calendar spreads are popular
- Profit objective is 50% of max profit
- Calendar spreads have lower profit targets
- Profit targets are 10-25% of debit paid
1:56lesson
Choosing stocks for calendar spreads
- Higher price stocks have higher basis
- Higher basis makes trade more significant
- Avoid low-priced stocks for calendar spreads
3:46lesson
Setting up a calendar spread
- 2:1 ratio between DTE in back and front month
- Buy back month, sell front month
- Profit is time decay and volatility expansion
5:34lesson
Maximum loss and risk management
- Maximum loss is the cost of the calendar spread
- Avoid low-cost calendars if you want to make money
- Risk is low but reward is also low
7:25lesson
Vega differential in calendar spreads
- Long back month, short front month
- Vega is higher for longer-term options
- Volatility expansion benefits long options
9:11lesson
Low-cost calendar spreads
- Low-cost calendars have low max loss
- But low reward potential
- Avoid low-cost calendars if you want to make money
Informational only — this is tastylive’s content, decoded by Plutus. Not Paid Daily’s advice or a recommendation. The outline, timestamps, and claims are extracted from what the creator said; verify before acting.