Why Calendar Spreads Are NOT Long Volatility Trades

✅ Sign up with tastytrade: https://geni.us/tastytrade The long calendar spread is taught as a positive theta, positive vega trade. The spread's positive vega exposure means it should profit from an increase in implied volatility. There's just one problem. In this video, we'll show you exactly why a long calendar spread position is NOT long volatility. More specifically, you'll learn how long calendar spreads can: 1. LOSE money from increases in implied volatility. 2. MAKE money from decreases in implied volatility. We'll show you real trade examples to prove these concepts to you. tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.