[Verse 1]
Picture two contracts dancing through time
One expires next month, one in July
Selling the short date, buying the long
Calendar magic when volatility's wrong
The clock becomes profit, theta's your friend
While premium melts from beginning to end
[Chorus]
Calendar spreads, time decay pays
Buy the distant, sell the near
Calendar spreads, volatility fades
Profit flows as months disappear
Same strike price, different dates
Time becomes money at different rates
[Verse 2]
When markets move sideways, you're sitting pretty
Short option withers while long stays gritty
Maximum profit hits at expiration
Right at your strike price destination
Risk stays limited, defined and small
Time differential conquers all
[Chorus]
Calendar spreads, time decay pays
Buy the distant, sell the near
Calendar spreads, volatility fades
Profit flows as months disappear
Same strike price, different dates
Time becomes money at different rates
[Bridge]
Implied volatility matters most
When front month's rich, that's when you boast
Sell expensive theta, buy the cheap
Watch the calendar while others sleep
[Verse 3]
Breakeven points frame your profit zone
Too much movement leaves you alone
Sweet spot's narrow, timing's key
Harvest theta systematically
Close before the long month fades
Master time, not just the trades
[Chorus]
Calendar spreads, time decay pays
Buy the distant, sell the near
Calendar spreads, volatility fades
Profit flows as months disappear
Same strike price, different dates
Time becomes money at different rates
[Outro]
Calendar wisdom, theta's art
Time decay's your beating heart