From Nasdaq: 2024-05-15 08:37:56

Calendar spreads involve selling a short-term option and buying a longer-term option with the same strike, with potential for neutral, bullish, or bearish setups.

Barchart’s Long Call Calendar Screener highlights calendar spread trades on popular stocks like GOOGL, AMD, ARM, DIS, SHOP, and TSLA.

GOOGL example: Selling May 31 $175 call and buying July 19 $175 call for a net $373 cost, potential $290 profit.

AMD example: Selling May 31 $160 call and buying July 19 $160 call for a net $506 cost, potential $480 profit.

ARM example: Selling May 31 $120 call and buying July 19 $120 call for a net $290 cost, potential $485 profit.

Calendar spreads provide risk management, with a suggested stop loss at 20-30% loss of premium paid. Remember, options trading involves risk, consult financial advisor before investing.



Read more at Nasdaq: Options Outlook: Calendar Spread Screener Results for May 15th