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Reverse Calendar Spread


An option or futures spread which reverses a regular calendar spread. That is, it is created by longing a near-month position and shorting a far-month position in the same underlying and at the same strike price. The reverse calendar spread helps investors benefit from substantial market movements regardless of direction. A rapid upward or downward move in the underlying’s price will completely offset the effect of time decay of this spread.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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