Deep-in-the-Money LEAPS Put Calendar Spreads
This is a special type of calendar spread intended for a 9 to 12-month bullish position on stocks that have LEAPS put options. These trades provide high leverage, but may require some unusual maintenance. To do this type of trade, the stock must offer LEAPS puts with strike prices well above the current stock price. It helps if those puts also have significant open interest, although you may be able to work around that issue if necessary.
Basic strategy: Buy one long-term LEAPS put (21 to 24 months until expiration) with a strike price that is well above the current price of the stock and sell one nearer-term LEAPS put (9 to 12 months until expiration) with the same strike price.
This creates a calendar ...