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Long Calendar Spreads

Lesson 7 of 12

Duration 4:57

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Contributed By: The Options Industry Council (OIC)

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6 thoughts on “Long Calendar Spreads”

  • Daniel

    Hi, can I create a calandar spread from an already open position?
    I am long long-dated calls on xyz and would lile to sell short dated calls on xyz. How can I attach the short short-dated call to my open position?

    • Interactive Brokers

      Hello, thank you for reaching out. To create a calendar spread using existing positions:

      Open the Strategy Builder window in TWS. This can be accessed from the New Window dropdown.
      Click the “Calls and Puts” tab at the top to switch to the chain view.
      Click the bid or ask price of the options you already own to add them as legs of the spread. Make sure to add both the long and short legs.
      Define the order parameters like quantity and price in the Order Entry section.
      Review the order details and click Submit Order. This will create the calendar spread using your existing positions.

      The key things to note are:
      Add both the long and short legs to the Strategy Builder
      Make sure the quantities match your existing positions
      Use the Order Entry section to define the spread specifics
      Please reach back out with any more questions. We are here to help!

  • David

    Does IBKR allow Long Calendar Spread on Index Options (e.g., NDX, SPX)? What buying power would be required for these kind of order?

    • Interactive Brokers

      Thank you for asking. IB Insync has been discontinued for a few months now due to personal issues of the library’s developer. While Interactive Brokers would recommend using the TWS API directly, the co-developer has created a split “IB Async” library to continue development work and operates on modern releases of the TWS API library to correct the compatibility issues. If you have any additional questions, please create a web ticket for this inquiry. We have a category specifically for “API.” One of our API experts will be happy to guide you! https://spr.ly/IBKR_ClientServicesCampus

  • Paul

    Hi. Can we trade double/triple calendar spreads on Weekly expiries or even 0DTE? Thank you!

    • Interactive Brokers

      Thank you for contacting us on IBKR Campus. Can you please clarify your question?

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This material is from The Options Industry Council (OIC) and is being posted with its permission. The views expressed in this material are solely those of the author and/or The Options Industry Council (OIC) and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Options Trading

Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.

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