Long Put Calendar – Time Decay with Direction Control

A Long Put Calendar is a smart strategy where a near-expiry Put is sold and a far-expiry Put is bought at the same strike. It works best when price stays near the strike and time decay works in your favor. When to use: Use this strategy when the market is neutral to moderately bearish and volatility is stable to slightly rising. Historic Example: In the first week of July 2023,

was trading near ₹980, and was expected to stay around the same level for July 2023 expiry. • Sell July 980 Put @ ₹23 • Buy August 980 Put @ ₹35 Net premium paid = ₹12 Profit & Risk: Max Profit = When expires near ₹980 in July Max Loss = Limited, but can exceed the net premium paid Key takeaway: Long Put Calendar benefits from faster decay in the near-month option while retaining downside exposure through the far-month Put. 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered advisor before making any investment decisions.