What's my max loss on a calendar spread if I hold it to the near-term expiration?

For a standard long calendar spread with both legs at the same strike, the maximum loss is the net debit paid: the far-dated premium minus the near-dated premium collected, times 100 shares per contract.

How is this calculated?

Net debit per share = far-dated premium paid - near-dated premium received. Max loss per contract = net debit x 100. Total max loss = max loss per contract x number of contracts.

Calendar Spread Max Loss Calculator

Enter Your Calendar Spread

This assumes a standard long calendar: sell a near-dated option and buy a longer-dated option at the same strike.

Your Result

Enter what you paid and collected on each leg, then click Calculate Max Loss to see your net debit and capital at risk.

How this is calculated

A standard long calendar spread's max loss is the net debit paid, assuming both legs share the same strike and the position is held to the near-term expiration.
Net debit equals the far-dated premium paid minus the near-dated premium received.
Unlike a vertical spread, a calendar spread's breakeven prices depend on implied volatility and time decay at the near-term expiration, not just the strike prices, so they cannot be reduced to a single formula the way a vertical spread's can.
This tool only calculates the defined max loss. For where the position is actually profitable at near-term expiration, use your broker's risk graph, which accounts for volatility.
This is standard options math based on the numbers you enter, not a projection of how implied volatility will actually behave.

Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Trading involves risk of loss, and past position sizing decisions do not predict future results. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation - always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.

What's my max loss on a calendar spread if I hold it to the near-term expiration?

Enter Your Calendar Spread

Your Result

How this is calculated

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