Options Glossary

Glossary: Ratio Calendar Spread

Last Updated: July 12, 2015

Glossary

Ratio Calendar Spread

What Does Ratio Calendar Spread Mean in Options Trading?

An option strategy which makes money if the underlying decreases or increases in price within an expected range and experiences a loss if the underlying decreases or increases in price beyond the expected range. This position is created by buying an In The Money (ITM) or At The Money (ATM) put or call and selling more further Out of The Money (OTM) puts or calls such that an overall credit is received.

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