# Long Call Calendar

> Is the near-term expiration expensive relative to the far one (a term structure in backwardation)?

| Property | Value |
| --- | --- |
| Market phase | Range-bound, no trend, price oscillating between levels, After a volatility spike, with a return to normal expected |
| Driver | Vega - you get paid on a change in implied volatility, Theta - you get paid because time passes and premium decays, Path-dependent - the outcome depends on WHEN price is where, not just where it ends up |
| Direction | neutral near term, bullish longer term |
| Max profit | no closed form - it depends on IV and remaining time |
| Max loss | approximately the debit |
| Risk defined | Yes |
| Legs | -1 Call @K (near expiration); +1 Call @K (far expiration) |
| Approval level | 3 (Defined-risk spreads) |
| Experience | Advanced |

## Formulas

```text
Break-even: simulation only - no classic expiry payoff
Max profit: no closed form - it depends on IV and remaining time
Max loss: approximately the debit
```

## Legs

1. -1 Call @K (near expiration)
2. +1 Call @K (far expiration)

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/long-call-calendar)