STRATEGY EXPLAINER · 2:47
Calendar Straddle Strategy Explainer Video
The Calendar Straddle is implemented by selling a near-term Long Straddle while buying a longer-term straddle at the same strike, with the intention of benefiting from the near-term options’ time decay. The trader may expect little near-term stock movement. Profit also depends on changes in the value of the longer-dated options, so low realized volatility alone does not ensure a gain.
