Far Option


DEFINITION of '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 will be the near option. Because far options have more time to attain an in-the-money status, they are associated with larger premiums.


For example, a calendar spread strategy may involve selling May calls and buying October calls on the same stock. In this case, assuming it is April, the October calls would be the far options and the May calls would be the near options.

  1. Reverse Calendar Spread

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  2. Out Of The Money - OTM

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  3. Horizontal Spread

    An options strategy involving the simultaneous purchase and sale ...
  4. In The Money

    1. For a call option, when the option's strike price is below ...
  5. Vertical Spread

    An options trading strategy with which a trader makes a simultaneous ...
  6. Expiration Date (Derivatives)

    The last day that an options or futures contract is valid. When ...
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