Calendar spread

Definition:

Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at the same strike prices, but with different expiration date.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Heavy

An equities market now dominated by sellers, or oversupply, resulting in falling prices. See: Overbought, resistance level, tired.

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