What Is Calendar Spread. A calendar spread is an options strategy that is constructed by simultaneously buying and selling an option of the same type (calls or puts) and strike price, but different. A calendar spread allows option traders to take advantage of elevated premium in near term options with a neutral market bias.
A calendar spread is an options trading strategy that involves buying and selling two options with the same strike price but different expiration dates. A calendar spread is an options strategy that involves multiple legs.