Introductory Context
"An institutional masterclass on trading near-term vs far-term time decay on Indian equity options using Horizontal Calendar Call Spreads."
Strategy Dossier & Taxonomy
Strategy: Calendar Call Spread (Horizontal Time Spread) | Market: NSE Options | Structure: Short Near-Month Call + Long Far-Month Call (Same Strike)
1. The Core Principle in Plain English
A Calendar Call Spread exploits the fact that near-term options decay significantly faster than longer-term options. You sell a near-month Call option (high theta decay) and buy a far-month Call option at the exact same strike price (low theta decay).