Calendar Spread Strategy

A calendar spread involves buying and selling two options of the same type and strike price but with different expiration dates. The goal is to profit from the difference in the rate of time decay between the two options.

Usually, the trader sells the shorter-term option and buys the longer-term one, betting that the shorter-term option will lose value faster. This strategy is popular in crypto when a trader expects the market to remain range-bound for a period.

It is a low-risk way to capitalize on theta decay while maintaining exposure to the market through the longer-term option.