Calendar Spread

Options Spreads Intermediate NIFTY BANKNIFTY FINNIFTY Stock Options

Neutral - expecting price to stay near strike

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Quick Reference

Strategy Type	Time Spread / Theta Differential
Market Outlook	Neutral - expecting price to stay near strike
Risk Profile	Limited to Net Debit Paid
Reward Profile	Maximum at Strike Price at Near-Term Expiry
Time Horizon	3-7 days for weekly calendars
Capital Requirement	Net debit Rs.50-80 per lot for weekly calendars
Best Used When	Low IV environment with expected stability, VIX below 14, price consolidating at identifiable level

When to Use This Strategy

Low IV environment with expected stability, VIX below 14, price consolidating at identifiable level

Payoff Diagram

P/L (at front-month expiry) │ │ ╭───────╮ │ ╱ ╲ │ ╱ ╲ │ ╱ ╲ │ ╱ ╲ ─┼──●─────────────●─────────────●─── Stock Price │ │ │ │ │ Lower BE Strike Upper BE │ │─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ Max Loss (Net Debit) │

India-Specific Notes

Trading Hours

Equity	9:15 AM - 3:30 PM IST
Derivatives	9:15 AM - 3:30 PM IST
Pre Open	9:00 AM - 9:15 AM IST

Expiry Behavior

Weekly Expiry	Every Thursday (NIFTY, BANKNIFTY, FINNIFTY)
Monthly Expiry	Last Thursday of month (Stock options)
Settlement	Cash settled for index options
Calendar Note	Weekly options enable weekly calendar spreads on indices - powerful for frequent trading

Lot Sizes

Stocks

Varies by stock (check NSE)

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