Time Spread
Definition
An options strategy using the same strike price but different expiration dates — also known as a calendar spread or horizontal spread. Profits from differences in time decay rates between expirations.
Example
A time spread buys a longer-dated option and sells a shorter-dated option at the same strike to collect faster time decay on the short leg.
Related Terms
Frequently Asked Question
What is a Time Spread?
A time spread (calendar spread) uses same strike, different expirations: sell near-term, buy longer-dated. Profits from faster decay in the short option. Also benefits from IV expansion.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.