Meaning of CALENDAR SPREAD in English

CALENDAR SPREAD

The sale of an option with a nearby expiration against the purchase of an option with the same strike price, but a more distant expiration. The loss is limited to the net premium paid, while the maximum profit possible depends on the time value of the distant option when the nearby expires. The strategy takes advantage of time value differentials during periods of relatively flat prices.

A guide to futures and options market technology English dictionary.      Английский словарь-руководство по фьючерсам и опционам рыночных технологий .