5.3.5.3. Reverse Calendar Spread
A short calendar spread is best known as a reverse calendar spread. As you might expect, a reverse time spread involves the purchase of the nearby month and sale of the deferred month. With this spread, the investor is expecting to profit from a sharp movement in the price of the underlying product in either direction or a sharp move downward in implied volatility.
An investor in a short calendar spread should always receive a net premium at the outset, which is his maximum profit if prices do move sharply as expected. If prices do not move, the spread will widen because of time decay