Calendar Spread

Filed Under » Derivatives , Futures , Options

	Definition of 'Calendar Spread' An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread.
	Investopedia explains 'Calendar Spread' An example of a calendar spread would be going long on a crude oil futures contract with delivery next month and going short on a crude oil futures contract whose delivery is in six months.

Related Definitions

Futures

A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date ...
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Intercommodity Spread

Going long on one futures market in a given delivery month and simultaneously going short on the same commodity and delivery month but a different futures market but with similar ...
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Interdelivery Spread

Simultaneously entering a long and short on the same futures contract but with different delivery months in the hopes that the price difference between the two months widens or narrows, ...
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- Delivery Month
  
  A key characteristic of a futures contract that designates when the contract expires and when the underlying asset must be delivered. The exchange on the futures contract is traded will ...
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- Reverse Calendar Spread
  
  An options or futures spread established by purchasing a position in a nearby month and selling a position in a more distant month. The two positions must be purchased in the same ...
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- Far Option
  
  The option with the longer time to expiration in a calendar option spread, which involves buying or selling options with different expirations. In such a spread, the shorter-dated option ...
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Pencil In Profits In Any Market With A Calendar Spread

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Trading Calendar Spreads In Grain Markets

Futures investors flock to spreads because they hold true to fundamental market factors.
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