What Is a Calendar Spread in Options?
A calendar spread sells the near dated option and buys the longer dated one at the same strike. See the term structure and greeks data that sits behind it.
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A calendar spread sells the near dated option and buys the longer dated one at the same strike. See the term structure and greeks data that sits behind it.
The IV term structure is implied volatility plotted by expiration. See what upward sloping and inverted curves mean, with real option data on the shape.