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Mukundaa - I think your list is pretty accurate with the pro's and con's. I'd add to the point about position sizing that you typically can use a smaller allocation because your gain% potential is much greater than with higher priced calendars - typically 50% or more. I know I've posted this checklist before (its been a while), but here is the checklist I use when considering entering a low-cost calendar. I typically look for all these conditions to be met before opening a trade: Options must trade at high IV (low IV doesn't move enough to make a meaningful calendar gain). Option bid/ask spreads must be small to allow for close to mid-point pricing. Options must have a decent trading volume so as to avoid liquidity concerns. Spread entry price must look good historically and show a good chance of at least a 20% gain (the lower the cost of the calendar then the higher gain potential I'd be looking for). In both trades I've made and those that I've tracked and wish I've made, there are lots of examples of cheap calendars with oversized gains anywhere from 50% to 100%, so they are definitely trades I like to make when all the criteria look good.

Here is my view on 2 week calendar v/s 6 week calendar for cheap calendars which range from .15c to .50c Disadvantages of 2 week calendar. 1. commissions eat up a lot of percentage of gains and adds a lot of percentage to loss as well. 2. position sizing is difficult with 2 week calendar due to cheap prices. 3. With 2 week calendar , the entry and exit both have to be executed with high precision down to penny. Every penny counts few percentage. So overall I would say 2 week calendar is for very highly experience players who can execute trades with high precision and use the cheapest brokers. 6 week calendar is more relaxed approach . There are advantages of 2 week calendars too. 1. If earnings are not yet announced and there is uncertainity, then 2 week calendar has reduced risk for same number of contracts, not position allocation.