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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

Option Seller

Understand the meaning and definition of Option Seller in the context of stock market, trading, and investments.

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High

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

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Uncovered call writing

Understand the meaning and definition of Uncovered call writing in the context of stock market, trading, and investments.

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Time and Sales Ticker

Understand the meaning and definition of Time and Sales Ticker in the context of stock market, trading, and investments.

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Settlement Price (futures)

Understand the meaning and definition of Settlement Price (futures) in the context of stock market, trading, and investments.

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