What does Inter-delivery Spread mean?
Inter-delivery Spread is a type of spread between two options for the same underlying asset that expire in two different calendar months. Inter-delivery Spread is based on the expectation that the price relationship between two will change during the coming months and yield a net profit.
Futures Knowledge Explains Inter-delivery Spread
It is a trading strategy of buying one option and selling another option of the same type but expiring in different months. For example, an investor buys a Gold futures August contract and simultaneously sells another Gold futures December contract with identical characteristics except that the second contract has a later expiration date.