call calendar or put calendar?

I don't think it was an arb, just a bid ask spread.

There was a good chat session on calendar spreads some time ago at TOS, look it up in chat transcripts.

 

You are right. With slippage, there is no arb opportunity.

Even with no arb opportunity, are there any advantages of opening long call calendar vs long put calendar (if we can get it at mid?)

 

Not really.

 

Check out this TOS chat transcript for the call calendar vs. put calendar discussion.

 

Thanks a lot.

 

The call calendar costs more, which results with the put calendar having a better R/R ratio.

Am I missing anything here?

 

From the transcript:

Tom Preston: So, if the put calendar is cheaper than the call calendar, would it be better to buy it?

Tom Preston: Not really. Even though the call spread is more expensive, all things being equal, the back month call will be worth more than the back month put at the front month expiration by an amount approximately equal to the amount of carry between the front and back month expiration.

Not sure if that's what you're asking.

 

The profit potential is less, everything being equal, so the risk/reward remains the same.