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Short Calendar Put Spread


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.



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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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