I would not recommend calendar spreads - they move slow and they have high transaction costs and wide bid/ask spreads so the chance of making money either way is slim. The brokers like them.
24 out of 27 months , it made ticks on puts calendars but lost in 3 out of 27 89% win rate Now let us try the call version , and see if it adds to some advantage Real traders don't sit at a screen monitoring every tick , jumping in and out of trades , that is forex idiots. Good traders can make 1 good trade a month , make 30 ticks a month $30 per pip and it gives a nice living , but not in forex , because that is only possible in imagination in forex . You don't really need more than 20k to make $900 per month . You need discipline , mindset and very good 12 " between the ears or a really good strategy and less in the coconut. This trade will make 30 ticks
Stymie, I need some advice: I don't trade calendar (or more general, diagonal) spreads but sometimes after I bought a call, a little later I sold a nearer term call to help pay for the premium of the longer call. So I legged into a calendar spread. In general are the premiums I collected worth the risks of losing big profit potentials? And finally, is doing this a good idea or a dumb idea? Thanks. Trading Education Buyer, do you have any comments?
I tend to sell same month at higher strike. , nothing wrong if you bought orignal below support and sold above support.
Reverse calendar spread are trend biased , money is made from delta and theta , they can be profitable after drops in stock market indices to oversold areas .They can be very useful when extreme volatility has broken out and premiums are high. You also have to have some fundamental and technical bias to your trades , this is not in the option formula.Also bear in mind ,market ranges 80% of the time and looking for trends is often looking for needle in a haystack.