Calendar Straddle or Combination

Calendar Straddle or Combination

See Calendar Spread.

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Calendar Straddle or Combination

An options strategy in which an investor takes the same position in two different option contracts identical in every way except the expiration date. For example, an investor utilizing a calendar straddle strategy may buy or write two puts on the same underlying asset at the same strike price but of which one has a longer expiration. A calendar straddle allows the investors to profit from the difference in price on the underlying asset between the two expiration dates. It is also called a horizontal spread or a time spread.