Definitions

Calendar Spread

Posted By: TradersLog

(1) The purchase of one delivery month of a given futures contract and simultaneous sale of a different delivery month of the same futures contract;

(2) the purchase of a put or call option and the simultaneous sale of the same type of option with typically the same strike price but a different expiration date. Also called a Horizontal Spread or Time Spread.

See also: Spreads

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