Reverse Calendar Spread

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Dictionary Says

Definition of '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 underlying market and must have the same strike price. The goal of a reverse calendar spread is to capitalize on major price fluctuations.
Investopedia Says

Investopedia explains 'Reverse Calendar Spread'

A reverse calendar spread is most profitable when markets make a huge move in either direction. It is not commonly used by individual investors trading stock or index options because of the margin requirements; it is more common among institutional investors.

The opposite of this strategy is the calendar spread.

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'Reverse Calendar Spread'

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    http://www.investopedia.com/articles/optioninvestor/03/041503.asp
    ... The strategy presented below is similar to a reverse calendar spread (a diagonal
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  • An Option Strategy for Trading Market Bottoms

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    ... The reverse calendar spread is not neutral and can generate a profit if
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  • The Dash For Trash

    http://stocks.investopedia.com/stock-analysis/2009/The-Dash-For-Trash-AIG-FNM-FRE-FAZ0828.aspx
    ... It's uncertain what to expect from AIG shares in the near term, so perhaps getting
    into a reverse calendar spread, which profits in volatile markets in the ...
  • Reverse Engineering Return On Equity

    http://www.investopedia.com/articles/fundamental-analysis/09/financial-ratios.asp
    Reverse Engineering Return On Equity. ... ROE = RNOA + (FLEV X Spread) OR = Return From
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  • Option Spreads: Credit Spreads Structure | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads4.asp
    ... decay across different months (such as in calendar, or time ... to the example of a vertical
    call spread with IBM ... Now we will reverse this order and generate a ...
  • Option Spreads: Horizontal Spreads | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads5.asp
    ... these types of spreads are known as calendar (or time ... long Vega than short Vega,
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  • Support and Resistance Levels to Watch

    http://stocks.investopedia.com/stock-analysis/moneyshow/SupportandResistanceLevelstoWatch.aspx
    ... 8), I was involved in an SPY 122 put calendar spread for members, which ... and the
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  • Option Spreads: Debit Spreads Structure | Investopedia

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    ... presents just the reverse, that is, unlimited potential losses with limited potential
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  • Option Spreads: Vertical Spreads | Investopedia

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    ... next), which profit from time value decay, the use of a spread can increase ... with
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  • Forex: Finding Your Trading Style

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    ... spread), but would be forced to stop out at only 7 points (10 points - 3 points
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