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Short Call Calendar Spread


An option trading strategy which involves selling a far-month call option and buying a near-month call in order to benefit from the accelerated time decay of the far-month option with regard to the near-month option. In other words, an investor following such a strategy will take advantage of the situation where the value of the far-month option declines by more than that of the shorter-term option.

This strategy is also known as a short calendar call 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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