what is a calendar spread 
a calendar spread is an options trading strategy that involves buying and selling options on the same underlying asset with the same strike price but with different expiration dates this strategy is also known as a time spread or horizontal spread the typical setup involves selling a short term option front month and buying a longer term option next expiry period or further out the bottom linein options trading the expiration date is pivotal influencing intrinsic and time value andthereby affecting the option s overall prices options come in various expiration cycles monthly weekly daily and even long term leaps to suit different trading goals and risk tolerances the fate of an option at expiration is categorized as atm itm or otm each with distinct outcomes ranging from expiring as worthless to being exercised in addition option greeks like delta gamma theta and vega are critical risk assessment tools deciphering how an option s price is expected to react to factors like stock price movements time decay and volatility understanding these concepts is essential for making informed trading decisions 