Calendar Spread
An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an interdelivery, intramarket, time or horizontal spread. Investopedia Says:
An example of a calendar spread would be going long on a crude oil futures contract with delivery next month and going short on a crude oil futures contract whose delivery is in six months. Related Terms:
Delivery Month
Futures
Intercommodity Spread
Interdelivery Spread |