Market in this example would be the ES currently at 1000 Bought on Jan 1st 2008 by me 5 March SPY 2008 ATM 100 calls costing us $4 each total 20 Sold Short on Jan 1st 2008 3 January SPY 2009 120 calls paying $7 premium each total $21 This is a scenario where we bought ATM calls in a 90 day expiration month (March 2008) On the same day we sold short 3 January SPY 2009 120 calls paying $7 premium. (This premium was used to pay for the 5 March calls. Whats this called?