Learn to Trade Options | #1 Options Trading Education

Category: Calendar spread

  • 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…

  • OPNewsletter Oct’10 Up 7.7%, Gear-up for Earnings

    Undoubtedly GOOG earning play was a star trade generating over +800% gains in a day. It wasn’t sheer luck, we prepared ourselves for it. I shall share our exact trade after earning season is over as we plan to use similar strategies for AAPL and later for some more counters during this earning season. For…

  • OPNewsletter Aug +8.4% (closed), Sept +4.3% (Open)

    OPNewsletter delivered +8.46% for the Aug 2010 Income portfolio on a 51% portfolio capital investment. As you may know, since mid of April 2010 we reduced our capital allocation to trading as we were anticipating this market meltdown which started around 3-4th week of April. For Sept 2010 opened portfolios, we are up +4.3% and…

  • 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…

  • OPNewsletter Jul 2010 Up +8.3%

    We are on track for our 28th positive month of OPNewsletter phase-2, as of last Friday close OPNewsletter Jul 2010 portfolio is up +8.3% on the maximum investment of almost 60% of portfolio capital. We have started opening Aug 2010 portfolios and our first portfolio is already positive. Let’s talk consistency first, especially on trades…

  • OPNewsletter April (Open) +9.8%, May (Open) +2.6%

    Though we shifted our option trading strategy in way so that more trading alerts can be sent during “pre and post market hours” vs during market hours to allow even working professionals to benefit, OPNewsletter is still not about “make money” in 5min per day. It still requires one to think and act vs let…

  • 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…

  • 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…

  • 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…

  • 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…