1. What it is
Sell a near-term put and call, and buy later-expiration counterparts. Matching each pair's strikes creates a double calendar; shifting later strikes creates double diagonals.
2. Why use it
Place two time spreads around different price targets.
3. How the numbers work
View example
- Sell 1 × Put · Strike 95 · Near expiration
- Buy 1 × Put · Strike 95 · Later expiration
- Sell 1 × Call · Strike 105 · Near expiration
- Buy 1 × Call · Strike 105 · Later expiration
- Option premium paid
- 4
At the first expiration, suppose the sold options expire worthless and the remaining options are worth 5：
- Position profit 5 − 4 = 1
The remaining value is an assumption, not a forecast. First-expiration maximum profit and breakevens depend on that value.
4. How it changes
Two time spreads distribute exposure around two strikes, but do not make theta uniformly positive. Near and far IV, skew and a move beyond either target all matter.
5. What to watch for
First-expiration maximum profit and breakevens depend on remaining option values. Separate assignment, skewed strikes and leg management can add exposure beyond a simple debit picture.
Two peaks are not a guaranteed profitable range. Inspect both expirations independently and plan what remains after the short options settle.
Examples use illustrative entry prices and amounts per underlying unit, before costs. Contract amounts require the contract multiplier. Expiration payoffs assume the illustrated legs remain intact; earlier position values and exercise or assignment outcomes can differ.