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Calendar Spread




Applying to derivative products, a strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date.

A 2-leg option strategy where the trader buys longer-term options and sells shorter-term options. Use all calls or all puts.

Related Terms:

Options
An option is a type of derivative - its value is derived from an underlying asset, ...

Ratio Backspread
A strategy using all puts or all calls whereby the trader buys OTM options in a ...

Butterfly
The sale (or purchase) of two identical options, together with the purchase (or sale) of one ...





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