Options Glossary

Glossary: Short Calendar Spread

Last Updated: July 12, 2015


Short Calendar Spread

What Does Short Calendar Spread Mean in Options Trading?

An options trading strategy in which near term open option contracts are purchased and longer term expiration option contracts are sold to take advantage of the difference in premium's time value decay. This strategy is generally less common than a debit calendar spread where the front month is sold and the back month is purchased.

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