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General TradingH
Horizontal Spread
An options strategy involving the simultaneous purchase and sale of two options of the same type and strike price but with different expiration dates. Also known as a calendar spread or time spread, it profits from the difference in time decay between the two options.
Example
“A trader set up a horizontal spread on AAPL by selling a near-term $180 call expiring in two weeks and buying a $180 call expiring in six weeks, profiting as the short option decayed faster.”