Calendar Put Spread Tweet
- Useful when IV is currently low but is expected to go higher in future
- Also useful if the stock is expected to be lower in the longer term
- Sell a put for the current month, buy a put for the later month
- Example, Sell 50 strike November put, buy 50 strike December put
- It will be a debit spread, because farther out put is more expensive
- If the IV picks up by Dec, profit.