Put Calendar


Put Calendar
An option strategy:
-Buy one put option contract with 90 days or more until expiration
-Sell one put option contract (at the same strike price) with 45 days or less until expiration
-In 45 days, sell another 45-day put option contract at the same strike price
-Hold the long position until expiration if it appears that market will be profitable. Otherwise, sell it.

Profits can be realized since the price decay of the 45-day contract declines at a faster rate than the long option. The difference in premium decays allows investors to make money on the spread. The inherent risk in this strategy arises if prices rise in the short term and then increase thereafter.


Investment dictionary. . 2012.

Look at other dictionaries:

  • CALENDAR — (Heb. לוּחַ, lu aḥ). The present Jewish calendar is lunisolar, the months being reckoned according to the moon and the years according to the sun. A month is the period of time between one conjunction of the moon with the sun and the next. The… …   Encyclopedia of Judaism

  • calendar — calendrical /keuh len dri keuhl/, calendric, calendarial /kal euhn dair ee euhl/, calendarian, calendaric, adj. /kal euhn deuhr/, n. 1. a table or register with the days of each month and week in a year: He marked the date on his calendar. 2. any …   Universalium

  • Calendar of 1997 — ▪ 1998 JANUARY JANUARY 1       Ghanaian Kofi Annan replaces Egyptian Boutros Boutros Ghali in the position of United Nations secretary general.       Among those knighted by Queen Elizabeth II in the annual New Year s Day ceremony is pop musician …   Universalium

  • calendar — Synonyms and related words: Chinese calendar, Cotsworth calendar, Domesday Book, Gregorian calendar, Hindu calendar, Jewish calendar, Julian calendar, Muslim calendar, Revolutionary calendar, Roman calendar, account book, address book, adversaria …   Moby Thesaurus

  • calendar spread — The purchase of one delivery month of a given futures contract and simultaneous sale of another delivery month of the same commodity on the same exchange. The purchase of either a call or put option and the simultaneous sale of the same type of… …   Financial and business terms

  • Calendar era — A calendar era is the year numbering system used by a calendar. For example, the Gregorian calendar numbers its years in the Western Christian era (the Coptic and Ethiopic churches have their own Christian eras, see below). The instant, date, or… …   Wikipedia

  • Calendar of 2003 — ▪ 2004 January So long as there is a single Brazilian brother or sister going hungry, we have ample reason to be ashamed of ourselves. Lula, in his inaugural address as president of Brazil, January 1 January 1       The Socialist Lula (Luiz… …   Universalium

  • Calendar date — For the use of dates on Wikipedia, see the Manual of Style. A date in a calendar is a reference to a particular day represented within a calendar system. The calendar date allows the specific day to be identified. The number of days between two… …   Wikipedia

  • Calendar of 1995 — ▪ 1996 January January 1       Cardoso assumes office       Having won some 54% of the ballots cast in the October 1994 election, Fernando Cardoso took the oath of office as president of Brazil. As chief executive of South America s largest… …   Universalium

  • calendar — noun ADJECTIVE ▪ busy, full ▪ The group has a busy social calendar. ▪ sporting (BrE), sports ▪ golfing, racing …   Collocations dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.