PUT CALENDAR

An option strategy:

  • Buy one put option contract with 90 days or more until expiration
  • Sell one put option contract (at the same strike price) with 45 days or less until expiration
  • In 45 days, sell another 45-day put option contract at the same strike price
  • Hold the long position until expiration if it appears that market will be profitable. Otherwise, sell it.