Exchanges
Book
December 9, 2022
Exchanges
Whipsaw
December 9, 2022

A calendar put spread that involves selling a far-month put and buying a near-month put of the same strike price. Its potential profit is limited to net premium received, while its maximum loss is confined to the time decay on the near-month put less the time decay on the far-month put.

It is also referred to as a short put calendar spread.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts