Constructing a Calendar Spread

Calendar Spread Example

See how a calendar spread can be constructed through a hypothetical example.

Calendar Spreads Explained

A calendar spread involves buying and selling options of the same type, same strike but different expiration dates.

The Impact of Time on Calendar Spreads

Explore how calendar spreads profit as expiration approaches.

Calendar Spread Trading Strategies Explained

Time spreads, also known as calendar or horizontal spreads, can be a great options strategy. Generally, they involve both short- and long-term positions over differing expiration months that can be used as bullish, bearish or neutral strategies, making them appropriate for a number of investment scenarios.

Why Might Investors Use Calendar Spreads?

Calendar spreads can offer a defined-risk approach, among other benefits. Watch to learn more about both the benefits and risks of this strategy.