For Calendar Spread we have terms and definitions in 6 topics. The topics are Derivatives, Finance, Financial, Investing, Options and Securities.

Calendar Spread (Derivatives)

A spread trade (q.v.) involving one long position and one short position.

Calendar Spread (Finance)

Applies 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.

Calendar Spread (Financial)

See Horizontal Spread. See Horizontal Spread.

Calendar Spread (Investing)

An options trading strategy wherein options are bought and sold on the same underlying security, with the options having identical strike prices but different expiration dates--also called a "Horizontal" or "Time" spread. Investors hope to profit from a narrowing or widening of the spread between the options.

See Also: Horizontal Spread; Options; Option Spread; Spread; Strike Price; Underlying Security

Calendar Spread (Options)

An option strategy in which a short-term option is sold and a longer-term option is bought, both having the same striking price. Either puts or calls may be used.

Calendar Spread (Securities)

An options spread position with the same strike prices, but different expiration months. Calendar spreads are entered to take advantage of the decay of time premium.

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