put calendar

Definition

An option strategy using differential rates of price decay. This strategy might make money on the spread - because the price of the shorter contract decays at a faster rate than the long option. One would make money unless prices rise in the short-term and keep increasing after that.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
put buyer put down