Calendar Spreads
Reduce risk with calendar spreads by buying a call 1-2 months out and selling the same strike with a closer expiration to reduce the cost.
If the stock doesn’t reach the target strike price then the short option expires worthless leaving an unlimited upside potential or the ability to sell another option against your long call.
Calendar spreads can be referred to as Synthetic Covered Calls or “Poor Mans Covered Call”
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