Thread by @sanjufunda

Mostly i hv seen people do calendar incorrect by doing both call put sell at atm and buying long straddle next expiry.
There is no need to place 4 leg which can happen only by 2 leg either by call calendar or put calendar.
If u see both example exact same payoff.

But i prefer put calendar due to its less sensitive to delta and more effective on vega as we know put side more premium mostly available and they decay slow and near to end of day/near to expiry.
Calendar is neutral payoff but its harsh move resistance power.

So if ur view sideways to bearish then only use it.
Its normally give 1sd breakeven but with time n vega payoff keep changing.
Even in sharp correction like march its useful and profitable if u follow proper guidelines.

Mostly careful in iv drop situations it can hit hard against u even in payoff. So normal conditions normally u can use diagonal calendar, ratio synthetic or inverted/reverse Calendar.
Be smart, trade less trade often! #option

Calendar is theta positive vega positive Strategy.

If anyone see 20% iv spike (see in pic scrolled up) then payoff breakeven u can see increase by big no. Thats why its vega positive trade means vega increase then profitable. Thats why sideways to bearish.

Answering as one of my consistent follower(sammy) asked,
Selling premium should greater than 66% of buying premium as per good risk reward. U can do either weekly vs weekly or monthly.

As per adjustment, i already told its sideways to bearish Strategy so downside keep recenter or take another put calendar and convert it double calendar. Upside keep moving leg up by delta as diagonal calendar already explained in previous article.

Ppl normally see overall payoff but it will keep changing as per situation, even in book u will read as neutral strategy. But actually its not neutral like atm butterfly.

Upside keep moving ( winning*) leg.