is running a very interesting web based class on calendars it started January 7 and runs until March. He is a big advocate of calendars. I am taking the class and it's great .
Sure, if you're only trading a few contracts and always have plenty of extra cash, then no problemo...you can roll out to the next month. Remember, your longs don't have to be too far away from your shorts. And another advantage of diagonals is that you can neutralise vega. Yes leverage without margin is a wonderful thing. Just don't overuse it. Lol. Isn't it a shame that ET doesn't allow signatures?
Calendar spreads would be good when you are just fairly neutral on the market and you want to generate additional income from your investments. It is important to cover risks when using this strategy. Your loss is limited to the net premium you paid (the money you paid for the option you purchased minus the money you received for the near-term option you sold.