Calendar Spread

AAA

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 TERMS
  1. Far Option

    The option with the longer time to expiration in a calendar option ...
  2. Reverse Calendar Spread

    An options or futures spread established by purchasing a position ...
  3. Futures

    A financial contract obligating the buyer to purchase an asset ...
  4. Delivery Month

    A key characteristic of a futures contract that designates when ...
  5. Intercommodity Spread

    Going long on one futures market in a given delivery month and ...
  6. Interdelivery Spread

    Simultaneously entering a long and short on the same futures ...
Related Articles
  1. Practical And Affordable Hedging Strategies
    Options & Futures

    Practical And Affordable Hedging Strategies

  2. Pencil In Profits In Any Market With ...
    Options & Futures

    Pencil In Profits In Any Market With ...

  3. Trading Calendar Spreads In Grain Markets
    Options & Futures

    Trading Calendar Spreads In Grain Markets

  4. Option Spread Strategies
    Options & Futures

    Option Spread Strategies

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center