Calendar Calls are a bullish strategy. This strategy is the reverse of the Calendar Put Spread. A conservative investor will look to trade Calendar LEAP spreads by purchasing an in-the-money (ITM) 1-year or 2-year LEAP and then selling At-The-Money (ATM) or Out-of-The-Money (OTM) near term calls against the LEAP (diagonal spread). Basically, this strategy is a leveraged covered call position because the investor will pay less for the LEAP than they would to own the stock. A profit is realized if the stock is trading above the break-even point at expiration. Since the ITM LEAP will always cost more than the premium on the short call, the position is entered at a debit. An investor can also trade horizontal spreads where the strikes of the two options are the same but have different expiration dates.