interdelivery spread

Interdelivery spread

Used in futures or options market to refer the purchase of one month of a contract and selling another month in the same contract, in the hope that the price difference will widen or narrow, depending on the investment.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Interdelivery Spread

An investment strategy in which one buys an option or futures contract while selling another option or futures contract on the same underlying asset with identical characteristics except that the second contract has a later expiration date. In an interdelivery spread, one expects that the prices on the contracts will move in such a way that the investor makes a profit.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

interdelivery spread

In options or futures, the purchasing of contracts expiring in one month and the selling of contracts expiring in a different month but on the same stock or commodity. For example, an investor might buy a June coffee contract and sell a September coffee contract.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
A sampling of terms defined includes: active premium, aggregation, angel financing, asset allocation, backwardation, benchmark, bridge loan, capital structure arbitrage, coefficient of determination, commodity option, convertible arbitrage, deferred futures, discretionary trading, distressed debt, enumerated agricultural commodities, extrinsic value, follow-on funding, hedge ratio, interdelivery spread, long short equity, modified value-at-risk, offshore fund, piggyback registration, social entrepreneurship, systematic trading, tracking error, underlying futures contract, venture capital method, and weather premium.