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    HomeNewsOpinionIn The Money: Use the Calendar Spread, when volatility is expected to increase

    In The Money: Use the Calendar Spread, when volatility is expected to increase

    Even if the underlying does make a large move, the maximum loss you can incur is the net premium outgo at deployment. In other words, losses are capped

    Ananya Roy
    October 23, 2023 / 11:03 IST
    The option we need to buy is expected to be costlier than the option we are going to sell, thereby making the Calendar Spread a net debit strategy.
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