Calendar & diagonal spreads
What is the optimal expiration distance (DTE gap) between the short and long legs of a Calendar spread?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Commonly cited practices separate expirations by roughly 30 days, though some traders use wider or narrower gaps depending on desired theta differential and sensitivity to term-structure shifts; no single gap is proven optimal.
How it works
A wider DTE gap increases the back-month option's relative price stability but can reduce the speed of profit realization, while a narrower gap accelerates decay differentials but raises gamma risk.
An example
A trader might sell a 30-day option and buy a 60-day option, a 30-day gap, versus a more aggressive 2-week versus 9-week structure for a wider gap.
Risk & limitations
Backtested 'optimal' gaps reflect historical averages, not guarantees; actual performance depends on prevailing implied volatility and the specific underlying's price behavior.
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.