Put Calendar Calculator

A put calendar sells a near-term put and buys a longer-dated put at the same strike, for a net debit. It profits if the stock sits near the strike when the short put expires, leaving the long put with most of its value. The mechanics mirror the Call Calendar; the choice between the two usually comes down to which side has the richer short-term premium.

When it is used

Traders use put calendars when they expect a stock to pause near a level for a few weeks, often a level a little below the current price, which gives the position a slightly bearish lean. They also suit a view that implied volatility will rise, since the long put benefits more from that than the short one loses.

How it makes and loses money

Profit comes from the short put decaying faster than the long one while the stock holds near the strike. A big move either way closes the gap between the two puts and costs money, with the loss capped at the debit paid. Rising implied volatility helps; falling volatility hurts, which is the usual risk after an event passes.

What to check in the grid

The column on the short put's expiry shows the tent: maximum profit at the strike, less on either side. Compare it with the columns a week before to see how much of the profit depends on the final days. After the short expiry the position is a plain long put.