Category: Calendar spread
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How To Calculate VIX Options Calendar Spreads Margin Requirement
The Volatility Index (VIX), also widely known as “The Fear Index” has been gaining lot of popularity especially after the recent financial crisis. These days almost every major asset class has its corresponding VIX, and in fact several countries have introduced VIX equivalent for their leading market indices. After several months of trading it personally…
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Agility Vs Doing Nothing
While at times market action may require one to be extremely agile, other times it requires you to do nothing. And the hardest thing for a trader is to do nothing . That’s the business of Trading which deals with human emotions, uncertainly and dependency. This is like uncertainty raised to the power of 3. Let me elaborate…
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Did You Notice This?
US Stock market registered a positive 1st full week for the Year 2010. For background, this is a week that is closely watched by market participants for if as goes the 1st week, so is the year; some say that probability rate is greater than 85% (Feel free to dig past data to see the…
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Bank of America (BAC) : A Speculative Trade
Before I start the post, let me warn that trading into financial is full of risks and you may lose your capital. You should make sure that you have a proper risk management plan in place to handle this and should only invest what you might be willing to lose 100%. And this particular trade…
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Bear Sterns (BSC) : Falling from grace
(for details pls visit www.OptionPundit.net) Have you noticed IV in BSC options recently? Attached chart from Ivolatility shows IV profile as of friday close >70%. However, as of now ATM levels are trading above 100%. There may be differences in the way IV is calculated by Ivolatility or ToS. Albeit, it offers great option premiums to play. It…
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OIH Income Trade – May 07
After lot of paper trades, successful real trades on NKE for past 3months and considerable research I have chosen this underlying for initiating double calendars which has almost similar profile as double diagonal to diversify my income portfolio. Here is the Income trade that I have opened for May’07: Sell – May Put $155, May 150 Put…