Calendar & diagonal spreads
What is a Long Calendar Spread using Puts and when is it superior to using Call contracts?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
A Long Calendar Spread using Puts sells a near-term put and buys a longer-term put at the same strike, often preferred when a trader wants to target a specific downside level with put liquidity or avoid call-side dividend risk.
How it works
Puts can be favored over calls for calendars when dividend dates make early assignment of short calls more likely, since early exercise risk is generally lower for short puts absent dividends.
An example
A trader targeting $90 support sells a 30-day 90 put and buys a 60-day 90 put, benefiting from faster decay of the short-term put near that level.
Risk & limitations
Put calendars still face the same core risks as call calendars: large directional moves away from the strike and shifts in volatility term structure can erode expected profit.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.