Can I build a Calendar Spread or Diagonal Spread using different expiries?
Yes. The Custom Strategy Builder supports combining legs across different expiries. For example:
- With a Calendar Spread, selling the near-expiry option and buying the far-expiry option on the same strike, you can exploit the difference in time decay (Theta) between the two legs.
- A Diagonal Spread adds a strike difference to the mix.
Both are accessible in the Custom Builder by selecting different expiry dates for each leg.
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