Pricing Calendar Spread Options - A Conservative Trading Plan
Once you initiate the Calendar spread, establish the breakeven (BE) points for your position (the upper and lower BE)
. If the stock moves to the BE point, make an adjustment by selling half of your original calendar spread and buying the same # of contract in another Calendar spread whose strike price is closer to the BE point. Pricing Calendar Spread Options
Pricing Calendar Spread Options - A Conservative Trading Plan