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

An option strategy that generally involves the purchase of a longer-termed option(s) (call or put) and the writing of an equal number of nearer-termed option(s) of the same type and strike price. Exam [..]

See Horizontal Spread

Definition An option strategy involving the simultaneous purchase and sale of options of the same class and strike price but different expiration dates.

Also called a intra-commodity spread. The simultaneous purchase and sale of the same futures contract, but different contract months. (i.e., buying a September CME S&P 500® futures contract and selling a December CME S&P 500 futures contract).

The simultaneous purchase and sale of options on futures contracts of the same strike price, but different expiration dates.

Calendar spread, a trading strategy, involves the simultaneous purchase of futures or options expiring in a particular month and the sale of the same instrument expiring in another month.

A Calendar Spread is a spread trade involving the simultaneous purchase of futures or options expiring but with different delivery months. The legs of the spread vary only in expiration month; they ar [..]

Calendar spreads, or time spreads, describe the price differential – or spread – that may arise between differently dated futures contracts. For example, the price difference between contracts for fir [..]

The sale of an option with a nearby expiration against the purchase of an option with the same strike price, but a more distant expiration. The loss is limited to the net premium paid, while the maxim [..]

The purchase of one option expiring on one date and the sale of another option expiring on a different date. Typically, both options are of the same type, have the same exercise price, and have the same underlying stock or commodity. Calendar spreads are sometimes referred to as time spreads.

an option trade that benefits from the passage of time, also called a time spread

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