Check this.
After you upload the picture, click the mouse in that red marked area where it says "BBcode", and right click to copy. Then you can paste the link in the "post reply" box here.
If there is a problem, then just paste the direct link i.e. http://i.imgur.com/AxxvZdj.png here.
With BBcode, the whole picture will be shown like this :
After you upload the picture, click the mouse in that red marked area where it says "BBcode", and right click to copy. Then you can paste the link in the "post reply" box here.
If there is a problem, then just paste the direct link i.e. http://i.imgur.com/AxxvZdj.png here.
With BBcode, the whole picture will be shown like this :
to upload on
A gem from Ravi, about buying options :thumb:
falling vix biggest enemy of option buyers , specially OTM options loose premium very fast.
if you want to make quick money from naked options intraday (not buy & hold type) :
1) your direction sud be right , market must not move opposite as options lose value very fast so SL hit etc.
2) market sud reach your target quickly otherwise again option will start losing value.
3) both these points cant be right always => you will gain once in a while but lose money mostly.(4 years experience doing this , still doing same
)
on friday, 7300 PE was at 39 when NF hit 7514, again after some time it was at 39 when NF @ 7497 , later it was at 39 when NF at 7480 :annoyed:
if you want to make quick money from naked options intraday (not buy & hold type) :
1) your direction sud be right , market must not move opposite as options lose value very fast so SL hit etc.
2) market sud reach your target quickly otherwise again option will start losing value.
3) both these points cant be right always => you will gain once in a while but lose money mostly.(4 years experience doing this , still doing same
)on friday, 7300 PE was at 39 when NF hit 7514, again after some time it was at 39 when NF @ 7497 , later it was at 39 when NF at 7480 :annoyed:
http://www.youtube.com/watch?v=YrtANPtnhyg
Check this out... this technology is out in some of the forms already
Check this out... this technology is out in some of the forms already
A good post about guidance on calendar spreads.
Hi Sabharwal_RK
Gmt900 is currently doing a thread about it: http://www.traderji.com/options/94802-nifty-calender-spread-calls-puts-2.html You may join this thread.
I have no clue about your knowledge about option trading. If you have little or no deeper knowledge about it, stay away from Calendar Spreads as you can burn your fingers with them. If you have some ideas about option trading, then the following links will give you enough information to start trading them at least on paper. Bookmark all of those links, as in the future you can use them for any other topics about option trading.
Here a link to "Discover Options": https://discoveroptions.com/public/pages/education/tradingArticles.html and here you read this article: https://discoveroptions.com/mixed/content/education/articles/wayofcalendar.html
To "Option Trading": http://www.optiontradingpedia.com/calendar_spreads.htm
To "Power Options": http://www.poweropt.com/calcallspreadhelp.asp
To "Investopedia": http://www.investopedia.com/articles/optioninvestor/10/implied-volatility-calendar-spread.asp
and finally to "Rockwell trading": http://www.rockwelltrading.com/buying-options/ As you can leg into any Calendar Spread, this link will give some help about when and how to go naked long, as one leg in any normal Calendar Spread is a long leg. This long leg is best from the next month series and the short leg is best from this months series. If you read the article from "Investopedia", you will understand the impact Implied Vola has on this strategy. If you read the article from "Power Options" and analyze the given risk picture, you will realize where your risk is with Calendar Spreads. If you read the article from "Discover Options", you will see an advanced way of Calendar Spread trading.
Take car and have a nice day / Dan
Gmt900 is currently doing a thread about it: http://www.traderji.com/options/94802-nifty-calender-spread-calls-puts-2.html You may join this thread.
I have no clue about your knowledge about option trading. If you have little or no deeper knowledge about it, stay away from Calendar Spreads as you can burn your fingers with them. If you have some ideas about option trading, then the following links will give you enough information to start trading them at least on paper. Bookmark all of those links, as in the future you can use them for any other topics about option trading.
Here a link to "Discover Options": https://discoveroptions.com/public/pages/education/tradingArticles.html and here you read this article: https://discoveroptions.com/mixed/content/education/articles/wayofcalendar.html
To "Option Trading": http://www.optiontradingpedia.com/calendar_spreads.htm
To "Power Options": http://www.poweropt.com/calcallspreadhelp.asp
To "Investopedia": http://www.investopedia.com/articles/optioninvestor/10/implied-volatility-calendar-spread.asp
and finally to "Rockwell trading": http://www.rockwelltrading.com/buying-options/ As you can leg into any Calendar Spread, this link will give some help about when and how to go naked long, as one leg in any normal Calendar Spread is a long leg. This long leg is best from the next month series and the short leg is best from this months series. If you read the article from "Investopedia", you will understand the impact Implied Vola has on this strategy. If you read the article from "Power Options" and analyze the given risk picture, you will realize where your risk is with Calendar Spreads. If you read the article from "Discover Options", you will see an advanced way of Calendar Spread trading.
Take car and have a nice day / Dan
Another gem from Dan about Calendar Spreads. Thanks for the drawings. A picture really is worth a thousand words.
@TP
To give you a visual view about going short this month and long next month or going long this month and short next month, check the screen shoots. The examples are done with horizontal calendar spreads and the pictures speak there own words:
Short the month which is more near expiry and long the month which is more far away from expiry:
Long the month which is more near expiry and short the month which is more far away from expiry:
Depending what strike levels you choose and what combinations you make, those pictures will look different. So as told: In this example I show only the different which shows up when doing "Horizontal Calendar Spreads" the way you mentioned.
Now to your next question about squaring off. Depending what you further plan with your long leg from the next month series, you let the short leg expire and play the long leg further in what ever way you wish to do so. If there is no further plan with your long leg, then you square off the whole trade at the end of the month.
@Sabharwal
One simple way is to roll up or down your whole calendar spread or you buy back the short leg and play an other strategy with your long leg. Here you have to be flexible in your option strategy planing/thinking. No fix rules here, only experience and tested strategies which worked for you in the past. Start with paper trades with the roll up and down strategy to get a first feeling about it.
Take care and have a good start into the new week / Dan
To give you a visual view about going short this month and long next month or going long this month and short next month, check the screen shoots. The examples are done with horizontal calendar spreads and the pictures speak there own words:
Short the month which is more near expiry and long the month which is more far away from expiry:
Long the month which is more near expiry and short the month which is more far away from expiry:
Depending what strike levels you choose and what combinations you make, those pictures will look different. So as told: In this example I show only the different which shows up when doing "Horizontal Calendar Spreads" the way you mentioned.
Now to your next question about squaring off. Depending what you further plan with your long leg from the next month series, you let the short leg expire and play the long leg further in what ever way you wish to do so. If there is no further plan with your long leg, then you square off the whole trade at the end of the month.
@Sabharwal
One simple way is to roll up or down your whole calendar spread or you buy back the short leg and play an other strategy with your long leg. Here you have to be flexible in your option strategy planing/thinking. No fix rules here, only experience and tested strategies which worked for you in the past. Start with paper trades with the roll up and down strategy to get a first feeling about it.
Take care and have a good start into the new week / Dan
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