 Hey everyone, welcome to another lesson from Navigation Trading. In this video, I want to show you how to trade a calendar spread on the TastyWorks platform. So we're looking at ticker GLD, which is the gold ETF. And remember, when we put on calendar spreads, we like to do that when implied volatility is low. In this case, GLD has an IV rank of 11.3, so pretty low. We like it to even be under 10, but this will work for this example. So the first thing we're going to do is we're on the Trade tab, and we are looking at the options with 30 to 60 days to expiration. In this case, the April options have 36 days to expiration, always sticking with the monthly options, which are in the bold white. So if we open up those option chains, you'll see the different strikes available, and we like to place these pretty close to at the money. If you have a little bit of a bias to the downside, you can skew it down a little bit, or to the upside, you can skew it up. But for the most part, we like to stick right around the money, which is indicated by this orange line. You can see that GLD is currently trading at about almost $125, and so that would be the strike that we would choose in this case. So there's a couple of different ways to put the trade on. For when we are entering a calendar, we are selling the front month, the near term month, and we're buying options in the next cycle. So we're selling the front month in anticipation that they are going to decay quicker than the back month, so we're going to be selling the front month and buying the back month using the exact same strikes. So in this case, the 125 strike is the one we want to sell, so we can simply click on that, and then we can close that chain and open up the next monthly cycle, which in this case is May with 64 days. So if we open up that and we look at the 125 and we click on the ask, and we simply buy that. So then that populates the order. You can see those down below. We've got the 125 put calendar. You can also do calendars on the call side. We typically like to start on the put side. Not a huge difference, but just a little bit more efficiency over time. So you can see we're selling the April 20th, 125 put, we're buying the May 18th, 125 put, and so that would be the calendar setup. You can also see that these are, when the option chains are closed, you can see that there's a red for sell and a green dot for buy. So just by looking at this, you know that you have that set up as well. So that's one way to do it. You can manually piece it together that way. The other way that you can use it, if we clear that off, is you can use the strategy dropdown. So when you do this, make sure that you click on long, because on a calendar we are buying it to open. And then in this case, we're using the puts, so you want to make sure that that is changed over to put. And then from the dropdown, you can choose calendar. If you hit go, that'll automatically put the calendar into your platform. Now here's the problem with this method of using the strategy dropdown is it doesn't automatically populate to the monthly expiration. You can see we're in a weekly one with 22 days, and then the further out we're buying with 43 days. So that's not what we want. You can utilize the expirations button down here, and you can push this further out in time. As you can see, we can get it so that the monthly is the one we sell. However, the long ones that are being bought are too far out, 92 days out is too far. We would want to be in the 64 days to expiration. So utilizing this tool, with some symbols, it's going to set the strikes on the correct expiration cycles. But in this case, using the tool and using the dropdown doesn't necessarily work quite right. So we'd really have to revert back to the first method I showed you, which is manually just going in and clicking on the strikes that you want in each expiration cycle. Calendars are a little bit different animal because most trades that we put on, all the strikes and all the options are within one expiration cycle. In this case with a calendar, we're utilizing options in two separate expirations. So the platform is just not set up to enter it that way, so we'll have to do it manually. So let's go back and manually do this. We want the 125, that's the one we're selling. That's correct. And then if we go out to this one, let's just go ahead and delete that leg, then we can go back into the May 18th, which is the cycle that we want, and buy the 125 by just clicking on it. Okay, so you do have to manually go in and do that. And then you can double check it down here. So we're selling the April 20th with 36 days. We're buying the May 18th with 64 days. Both of those are on the 125 put, which is when we want. So then what we can do is we can take this over to the analysis tab by clicking on curve and then make sure you have your analysis set as well. And that'll populate your graphic picture of the trade. So you can make this smaller or a little bit bigger, and you can see the green represents where you are making money, the red would represent where you are losing money. Now keep in mind, the statistics down below don't populate as far as the probability of profit because remember with a calendar where you were utilizing two different expiration cycles. So the P50 and the POP are not going to populate. And so you really just need to get an idea of if this trade makes sense based on where the break evens are, based on your max profit, which you can see up here on the flag, P&L at expiration $46 in this case with just one contract, and you can utilize it that way. You can also open up the theoreticals, and if you move the implied volatility through time, you can do that with both the front month and the back month. And you can kind of see how that affects the trade. It's a little bit odd with, again, with calendars, they're a little bit different animal with two different expirations, but you can kind of play around with those to get an idea of where your profit will be. If you move through time, you can kind of see how that affects it as well with a calendar. The way I explain it is kind of like an accordion. It can expand and contract. So your break evens are not set like they would be with an iron condor or some type of spread that utilizes just one option, expiration. So if you close that, and then if you're happy with what you're looking at, you can simply hit review and send and shoot it into the broker to get filled. So I hope this was helpful in explaining how to put on a calendar spread on the Tasty Works platform.