Question about calendar spreads assignment risk

Discussion in 'Options' started by trendisyourfriend, Oct 3, 2022.

  1. taowave

    taowave

  2. cesfx

    cesfx

    Even the fidelity link explains clearly that long calendars max risk is the cost of the spread. At least until front month exp.
    At the centre it might look like a short straddle, but I see no unlimited risk.
     
    #22     Oct 5, 2022
    taowave and earth_imperator like this.