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Horizontal Spread
Definition Of Horizontal Spread:
A trading strategy in the options market that involves the purchase of a call or put option and the simultaneous sale of the same type of option with the same strike price and a different expiration month.
Option spreads allow investors to speculate on relative price changes, and thus create another way to make profits, instead of just betting on a direct price change in one investment. Also called calendar spread.Other definition of horizontal spread- Alternative term for calendar spread.
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