Calendar secrets :-)

Discussion in 'Options' started by earth_imperator, Sep 14, 2022.

  1. destriero

    destriero

    Dipsht, the calendar is best practice if vols rise. The vertical is preferred if vols fall.
     
    #81     Sep 15, 2022
    Adam777 and timbo like this.
  2. So what's the Bottom Line to all this technical talk and debating,

    What kind of % returns over what time frame does all this deliver to the wise trader?
     
    #82     Sep 15, 2022
  3. Overnight

    Overnight

    Dude, you do NOT want to start with your malarkey in this thread, about hypothetical million-dollar years. Trust me.
     
    #83     Sep 15, 2022
  4. ondafringe

    ondafringe

    Yes. I was just joining the party. :)
     
    #84     Sep 15, 2022
  5. Overnight

    Overnight

    Well, apparently tomorrow is going to be crazy on the quad-witching, so hang on for the ride! IV should shoot through the roof, so work your option majiks!

     
    #85     Sep 15, 2022
  6. You are just saying the same what I already had said in my previous posting:
    And you are imprecise since you talk of IV generally, not distinguishing btw. the IV of the Short and Long leg.
    Even if you were implicitly meaning the combined "net volatility", it still would not be correct, IMO.

    Another fallacy of yours: your above 2nd statement says that at expiration IV matters with verticals.
    But it does not! B/c IV of any option does not matter at its expiration, as then only the price of the underlying matters.
     
    Last edited: Sep 16, 2022
    #86     Sep 16, 2022
  7. Just do the math to get the answer, as it's dependent on the basis (ie. the vertical alternative to the calendar alternative, or vice-versa). The degree of the improvement depends also on whether it's a margin acct or a cash acct. I think margin acct is generally better.
    Later I'll try to compile some values in table...
     
    Last edited: Sep 16, 2022
    #87     Sep 16, 2022
  8. destriero

    destriero


    Vols are expiration are zero with verticals. The vert is preferred if vols fall bc the calendar will suffer by comparison, moron.
     
    #88     Sep 16, 2022
  9. Tell us more such BS! Idiot! Back to my ban file.
    This idiot really believes IV goes to 0 at expiration! What a sicko!
     
    Last edited: Sep 16, 2022
    #89     Sep 16, 2022
  10. From my personal experiences and observations, the smartest people and talkers tend to deliver the least.
    Similar thing across teachers, porn/girls, food/restaurants, cars, movies, people, clothes, fashion, video games, books, shoes, learning, travel destinations, cities, homes, locations, watches, brands, pets, social media personalities, etc etc. etc

    You truly have to find and hunt for the hidden gems in life that have meaning and substance to you. They won't be things being advertised and talked about and presented in front of you constantly, loudly.
     
    Last edited: Sep 16, 2022
    #90     Sep 16, 2022