Anyone ever try the Long Calendar Strangle?

Discussion in 'Options' started by Adamoptions, May 31, 2003.

  1. I ran across an interesting play and I'd like to know if anyone has ever tried it. I found a good long straddle, but the underlying was between strikes so I checked out the strangle. The strangle had and 90% likelyhood of touching a breakeven in 6 months. But the likelyhood of the underlying touching these same strikes in only 6 weeks was a mere 15%. So it occured to me that I could do calendar spreads on both legs. I have about a 76% chance of success, but after the 6 weeks when the near-term expires, the risk of my strangle is very small. Anyone ever try something like this?