Derivatives Strategies
Calendar Spread
Definition
What is Calendar Spread?
A position using options with different expiration dates, usually at the same strike.
Example in practice
How This Looks in Practice
The trader sells a near-term option and buys a longer-term option.
Keep learning
Related Terms
Derivatives Strategies
Covered Call
A strategy that owns the underlying asset and sells call options against it.
Derivatives StrategiesProtective Put
A strategy that owns an asset and buys a put to limit downside.
Derivatives StrategiesCollar
A strategy combining a protective put with a written call, often to reduce hedging cost.
Option GreeksDelta
The estimated change in an option's price for a small change in the underlying price.