Calendar spread
TYPE OF STOCK OPTIONS TRADING STRATEGY
Time Spread; Horizontal Spread; Calendar spreads; Horizontal spread; Time spread
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 on a particular date and the sale of the same instrument expiring on another date. These individual purchases, known as the legs of the spread, vary only in expiration date; they are based on the same underlying market and strike price.