Comment on Calendar Spreads

Amey commented on 13 Dec 2018, 05:58 PM

Also, a follow-up.

How do you practically go about it? How do you open and close the position?

Unwinding the trade is a problem because of adverse bid-ask spread. Do you unwind with limit orders at LTP? What do you do if only one of the orders gets filled?

What happens is that even though I’m in good profit based on LTP of the two contracts, unwinding the trade at market prices would convert it into a loss.

Would appreciate if you could give kind of a walkthrough into your method.


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