In finance, a calendar spread (also called a time spread or horizontal spread) is a spread trade involving the simultaneous purchase of futures or options expiring at particular date and the sale of the same instrument expiring another date. The legs of the spread vary only in expiration date; they are based on the same underlying market and strike price.
The usual case involves the purchase of futures or options expiring in a more distant month and the sale of futures or options in a more nearby month.
Read more about Calendar Spread: Uses, Futures Pricing
Famous quotes containing the words calendar and/or spread:
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—Clifton Fadiman (b. 1904)
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—J.G. (James Graham)