Calendar Spreads Live Trade
Calendars Spreads are popular trades and come under the category of Time spreads. In a Calendar spread, we sell the front month Option series and buy the back month Option. The Calendar is generally constructed at the money, however, you can create bullish or bearish variations. It starts out as a delta neutral but can quickly move into a biased position. The Calendar is also one of the few strategies that is a Theta positive and a Vega positive trade. Because it is Vega positive, your Calendar will do better if Volatility increases after you put the trade on. The primary method of profit in Calendar Spread Strategy is to take advantage of a higher level of time decay in the front month. We put a Calendar trade on the GLD, and this quickly turns into a Double Calendar when price moves too much in one direction. In fact, this trade is an absolute roller-coaster and you will learn a very valuable lesson – Don't give up on your losers. If you simply close your losers and move on to the next trade, you will make the same mistakes and lose again.
Why are Calendars unique in Options
Why are Time spreads difficult to adjust
Popular adjustments for Calendars
Dealing with a trade in trouble. Live trade
JOIN OUR COMMUNITY FREE
Option Tiger is dedicated to all things Options and Markets. Whether you’re a beginner or advanced, get the most sophisticated Options and Market content.
Get access to Free Courses on Call Options and Put Options
Two Free E-Books and over 30 Mini-Courses on Options
Ongoing Market Updates and 500+ Video Library