Horizontal Spreads

From iOptioneer - an advanced option trading reference for iPhone

A horizontal spread, also known as a calendar spread, is a combination of a long and a short position in two contracts of the same type (call or put) and strike, but with different expiration dates.

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Horizontal spreads can be used to capture the profit when you predict volatilities will rise or fall.

See also vertical spreads, bull calendar spread and diagonal spread.

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The screenshot shows the following portfolio:

Volume

Instrument

1

European put struck at 8.000 with expiry in 90 days

-1

European put struck at 8.000 with expiry in 30 days

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