I see. I am entering much more calendar trades this year , but all of them are for a short term/event driven. Good luck , Donna
I'm going to shorten the duration of mine as well...as I re-read my posts I see how confusing they were...more like "stream of consciousness" no wonder I confused myself! And probably everyone else. I am going to try to be more concrete and not go into explaining my thought process as I am obviously very inarticulate GL to you as well
http://www.elitetrader.com/vb/showthread.php?s=&threadid=49586&perpage=6&pagenumber=795 Calendar presentation by chartbenders...interesting although perhaps more helpful to user's of chartbenders. There were a couple of new ideas for me as well as some conformation of things I have learned.
I do look at IV's and have only done spreads where the IV of the short month is greater than the IV of the long month. I'm sure there is a better and more complicated way to do it, but for now I'm keepin it simple and hope to refine the process as I go along.
For now I have been looking at the company and then checking to see if it's a good Cal candidate. I would like to be able to screen for stocks or indexes where the IV of the front month is > the IV of the long month. Any suggestion on where to go to run screens with those criterias combined with others (price, volume, OI) would be appreciated.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=49586&perpage=6&pagenumber=796 Rallymode..do you use chartbenders, ivolity or any other service to find candidates or do you have a stable of stocks you follow?tia
Have you tried chartbender's? I do pretty much what you do. I either have a stock in mind where I'm not certain of its direction but "think" it may be down or up then check to see if the vol's front/back are favorable.