While option structures are contango in the long term, it's not as simple as just "buying near-term and selling far-term" based on implied volatility (IV). If you want to make calendar arbitrage a consistently profitable strategy with smoother net asset value (NAV), you need to consider one practical aspect: is the daily time cost (Theta) and expenses worth the volatility gains? Here's a little-known pitfall: once the market moves out of your expected range, the hedging effect of the near-term portion weakens significantly, and the structure subtly changes, shifting the main risk to the far-term leg. This leads to a dilemma: it looks like arbitrage, but the trading experience feels like holding onto losing positions. 😅 Lesson 4 by @JeffLia12309881 increased the handouts from 50 pages to over 70 pages and added an extra section. Why spend time explaining these points? Because for calendar arbitrage in options to achieve "smoother NAV and long-term reproducibility," you must clearly understand where the overall profit and loss come from and how to manage Vega across maturities. Those who understand the subject will likely understand why it's being discussed just by looking at the outline in the accompanying image. Only by thoroughly explaining the concept can we then "improve the structure." For example, Jeff shared his approach to improving the "cost-effectiveness" of calendar arbitrage Gamma in the group; these kinds of details are where profits differ. Therefore, it's often said: join early, and having someone clarify the principles will save you from many detours and costly mistakes in your trading. Welcome to add VX: Maxli1700 to learn more about the course and progress together.