An options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, buying an XYZ April 50 call and selling an XYZ July 55 call. See: Calendar spread; vertical spread.
Nearby TermsDeutsche Terminbörse (DTB) Devaluation Diagonal spread Dialing and smiling Dialing for dollars
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University