Margin Requirement for Long Calendar Spreads

Applies only to margin accounts

The BP Effect for a long calendar spread is the net cost of the spread (debit paid for the long options - credit of the short options*). *Note, the short option(s) must expire before the long option(s).


tastyworks does not recognize calendar spreads in cash-settled indexes. Any short option without a corresponding long option in the same expiration cycle will be treated as uncovered.


To learn how to set up a calendar spread in the tastyworks platform, please click here.


Example of a Long Calendar Spread in a Margin Account

Buy to open 4 Jun 43 Calls at $3.00

Sell to open 4 Mar 43 Calls at $1.00  

The BP Effect of this position is $800 [($3.00 - $1.00) x 4 contracts x options multiplier]