Calendar Spread

Calendar Spread The calendar spread is one of the most basic and easy to understand option strategy. With the calendar spread we are ‘selling time’ – or to be more specific, we are selling an option that has time premium – with the intention to allow that time premium to melt away as time passes [...]

The calendar spread is an option income strategy used by professional traders to generate steady monthly income. It can also be used by retail traders who have educated themselves on how to properly use this strategy to not only generate cashflow – but to also benefit their overall portfolio. The calendar spread is a theta [...]

Calendar Spread – Defined In Future & Option market, a calendar spread also known as horizontal spread or time spread is a kind of spread trade which takes place by simultaneous buying of options or futures having the expiry at a specified date and sale of the similar instrument which has another expiring date. The [...]

Calendar Spread – Option Strategy This article is in regards to the calendar spread trade. When an option remains in a position which the expiration date is several months away, it is seen that time decay is comparatively slow. With the passage of time, the rate of time decay or the option’s theta increases. When [...]

This blog will focus on the calendar spread option strategy