OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Short Calendar Spread'

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What is Short Calendar Spread in Options Trading ?

Short Calendar Spread
An options trading strategy in which near term open option contracts are purchased and longer term expiration option contracts are sold to take advantage of the difference in premium's time value decay. This strategy is generally less common than a debit calendar spread where the front month is sold and the back month is purchased.




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