Position Modeler · 1:39

Model volatility with a calendar spread

Name: Model volatility with a calendar spread
Uploaded: 2026-09-16T16:22:16.942Z
Duration: 99 s
Description: Use the expiration-specific IV controls to set separate volatility assumptions. The overall mode controls how a master IV change is distributed across expirations.

Use the expiration-specific IV controls to set separate volatility assumptions. The overall mode controls how a master IV change is distributed across expirations.

Read this lesson in the full guide Watch on YouTube

Step by step

Build or load a calendar with different expirations. Choose how the overall IV shift is distributed: Parallel, square root of time or Mean-rev.
Compare the same IV change in each mode, resetting between comparisons. Parallel adds equal volatility points; time-weighted modes affect expirations differently.
Adjust an individual expiration slider or double-click its IV value to set a separate assumption. Review both expirations and reset when finished.