Neutral PCAL

Long Put Calendar Strategy

Time decay works for you — the put version of the calendar spread.

neutraltime decayIV playdefined risk

What is the Long Put Calendar Options Strategy?

A Long Put Calendar is the same concept as a Long Call Calendar but using put options. Sell a near-term put, buy a longer-term put at the same strike. The near-term put decays faster, and that speed difference is your profit.

Use puts instead of calls when the put skew gives you better pricing (puts are often overpriced relative to calls, especially in indices), or when you have a slight bearish bias.

Why is it Called "Long Put Calendar"?

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Same as Call Calendar — "Put" because both are puts. "Calendar" because they are at different dates. "Long" because you paid a net debit.

How Does the Long Put Calendar Trade Work?

  1. 1 Step 1 — Pick a stock expected to stay near a specific price.
  2. 2 Step 2 — Sell a put expiring in ~2 weeks.
  3. 3 Step 3 — Buy a put at the same strike expiring in ~6 weeks.
  4. 4 Step 4 — Pay the net debit.
  5. 5 Step 5 — Near-term put decays faster. When it expires, you still own the far-term put.

Types of Long Put Calendar Strategies

Most Common

Long Put Calendar (Standard)

Sell near-term put, buy same-strike longer-dated put. Profit from time decay differential.

When to Use the Long Put Calendar Strategy?

  • ✓ When put pricing is favourable due to skew
  • ✓ Same conditions as call calendar — stock expected to stay near strike
  • ✓ Pre-earnings IV play with slight bearish lean
  • ✓ Low IV environments

Profit and Loss of the Long Put Calendar

Before looking at the chart, here is a plain-English summary of what you can make and what you can lose.

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Maximum Profit

Depends on IV and decay — peaks at the strike price as the near-term put expires.

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Maximum Loss

The net debit paid.

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Breakeven Point

Dynamic — depends on remaining value of the long put.

Long Put Calendar Payoff Diagram

The chart below shows how profit/loss changes with the underlying price at expiry. Green zone = profit, red zone = loss.

Long Put Calendar Payoff Diagram illustrating profit and loss zones over underlying price0Low priceHigh priceProfitLoss
Illustrative payoff at expiry — not to scale

Long Put Calendar Example Trade

NIFTY at ₹22,000 Expiry: Sell: 14-day put. Buy: 45-day put.
ActionTypeStrikePremium
SellPut₹22,000 (14-day)+₹32
BuyPut₹22,000 (45-day)-₹55
Net Credit/Debit -₹23 net debit
Max Profit ~₹30 — if NIFTY stays near ₹22,000 when the 14-day put expires
Max Loss ₹23
Breakevens: Dynamic — roughly ₹21,900 to ₹22,100
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NIFTY hovered at ₹22,020. Short put expired worthless. Long put retained ₹40 of value. Profit: ₹17 on ₹23 invested = 74% return.

Pros & Cons of the Long Put Calendar

✓ Advantages
  • Profits from time passing
  • Defined risk
  • Often better priced than call calendar due to put skew
  • Works in quiet markets
✗ Disadvantages
  • Needs stock to stay near strike
  • Complex with two expiry dates
  • Hard to model precisely
  • Moderate IV changes can help or hurt unpredictably

Long Put Calendar Frequently Asked Questions

Test Yourself

Quick Quiz

Answer all questions and check your score.

1 How is a Long Put Calendar different from a Long Call Calendar?

2 Long Put Calendar profits most when:

3 You might prefer Long Put Calendar over Call Calendar when:

4 Maximum loss on a Long Put Calendar is:

5 Calendar strategies profit from: