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Options and Futures

Horizontal Spread

A common strategy in the world of finance is to engage in a purchase of either a call or put option, while simultaneously selling a similar option with the same strike price but a different expiration month. This tactic is known as a calendar spread and is widely used in the market. It allows investors to capitalize on the differences in price between the two options, ultimately maximizing potential profit.

Related terms

Strike Price

Understand the meaning and definition of Strike Price in the context of stock market, trading, and investments.

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Associate Membership

Understand the meaning and definition of Associate Membership in the context of stock market, trading, and investments.

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Daily Trading Limit

Understand the meaning and definition of Daily Trading Limit in the context of stock market, trading, and investments.

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Opening Sale

Understand the meaning and definition of Opening Sale in the context of stock market, trading, and investments.

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Deferred (Delivery) Month

Understand the meaning and definition of Deferred (Delivery) Month in the context of stock market, trading, and investments.

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Minimum Price Fluctuation

Understand the meaning and definition of Minimum Price Fluctuation in the context of stock market, trading, and investments.

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