SHORT CALENDAR SPREAD : target - 10 to 20% Return On Investment
- Thread starter linkon7
- Start date
Yeah I think its a pretty good time to Use Calender Spread Strategy..
Basically the more accurate you can get your closing prediction right.. the more you can earn in a Calender spread..
Now i am also thinking of taking a Calender spread tomorrow..
I feel a closing of 3300-3400 at the end of the month.. So..
1)Shorting this month's 3400 call @ 290
2)Buying Next month's 3400 call @ 340
Max Loss I can have is 50 (although that will be only possible if 3400 put of june trades @ 0 when the next month starts..)
My net income at the end of this month from this strategy would be...
The value(i.e excluding the "in-the-money premium) of (3400 put less 50) on the expiry date of May..
Basically the more accurate you can get your closing prediction right.. the more you can earn in a Calender spread..
Now i am also thinking of taking a Calender spread tomorrow..
I feel a closing of 3300-3400 at the end of the month.. So..
1)Shorting this month's 3400 call @ 290
2)Buying Next month's 3400 call @ 340
Max Loss I can have is 50 (although that will be only possible if 3400 put of june trades @ 0 when the next month starts..)
My net income at the end of this month from this strategy would be...
The value(i.e excluding the "in-the-money premium) of (3400 put less 50) on the expiry date of May..
Last edited:
AW,
Yaa... I would love to play calender spread now.
Its just that volatility is making my head spin. 150-160 points fluctuations seems par these days. Even on TV, those experts stopped giving opinions on nifty. I am waiting for friday' last hour to decide what strike price to target.
Just 9 trading days from monday and the premium is going to fall off a cliff. So cant let a learning experience go just like that.
Basically trying to figure out a system for scapling. Thats a whole new ball game and i am very impressed at the way, they stay in cash all the time. No worry about positions going bad or global market crashing. They seem to have the least amount of stress among all kind of traders.
Can u help me out with a suitable entry trigger for scalping. Thanks in advance.
Yaa... I would love to play calender spread now.
Its just that volatility is making my head spin. 150-160 points fluctuations seems par these days. Even on TV, those experts stopped giving opinions on nifty. I am waiting for friday' last hour to decide what strike price to target.
Just 9 trading days from monday and the premium is going to fall off a cliff. So cant let a learning experience go just like that.
Basically trying to figure out a system for scapling. Thats a whole new ball game and i am very impressed at the way, they stay in cash all the time. No worry about positions going bad or global market crashing. They seem to have the least amount of stress among all kind of traders.
Can u help me out with a suitable entry trigger for scalping. Thanks in advance.
hi
i new to options, i am just buying put options or call options but never sold call
sold 3700 call may at 145?
means you short sell 3700 call or buy put 3700.
can you put some light on it.
if it is writing 3700 call at 145 plz sir can you tell how to write, i am desperate to learn writing.
thanks in advance
kabir
i new to options, i am just buying put options or call options but never sold call
sold 3700 call may at 145?
means you short sell 3700 call or buy put 3700.
can you put some light on it.
if it is writing 3700 call at 145 plz sir can you tell how to write, i am desperate to learn writing.
thanks in advance
kabir
Options trader love the Volatility, specailly option writer. Gurus on TV can't take a call because of the fear of getting caught on the wrong direction hence they are playing safe.
Even if you are not trading it, but it is worth paper trading some strategy. We don't get this type of high VIX time period very often (hardly 10% of the time we enter this zone).
Sorry dear. Can't help you with this because I am miles away from scalping. IMO, trader needs to find the approach that fits their personality. No advantage in shifting the styles. I think, scalping is lot more intesive and needs trader to be full time in front of the screen. I would rather prefer to place a option trade and love to forget about it till expiry. I need time to do somethign beyond trading as well.
Disadvantage of scalping is that they feed more to the brokers, they take small profits, and small loss, they can't benefit from timedecay and volatility.
not trying to discourage you from scalping but shared my views on that.
Happy Trading
Even if you are not trading it, but it is worth paper trading some strategy. We don't get this type of high VIX time period very often (hardly 10% of the time we enter this zone).
Sorry dear. Can't help you with this because I am miles away from scalping. IMO, trader needs to find the approach that fits their personality. No advantage in shifting the styles. I think, scalping is lot more intesive and needs trader to be full time in front of the screen. I would rather prefer to place a option trade and love to forget about it till expiry. I need time to do somethign beyond trading as well.
Disadvantage of scalping is that they feed more to the brokers, they take small profits, and small loss, they can't benefit from timedecay and volatility.
not trying to discourage you from scalping but shared my views on that.
Happy Trading
