Calendar Spread

What is Calendar Spread?

Calendar Spread meaning (1) The purchase of one delivery month of a given futures contract and simultaneous sale of a different delivery month of the same futures contract; (2) the purchase of aput or call option and the simultaneous sale of the same type of option with typically the same strike price but a different expiration date. Also called a horizontal spread or time spread.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary