calendar spread

Definition of "calendar spread"
  1. A strategy in futures or options trading involving the simultaneous purchase and sale of contracts for the same commodity or asset with different delivery months or expiration dates
How to use "calendar spread" in a sentence
  1. The investor used a calendar spread to hedge his investment in gold futures.
  2. She used a calendar spread strategy when trading oil futures to capitalize on price differences between contracts.
  3. Using a calendar spread in his option trading strategy enabled him to profit from time decay and volatility.

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