Long calendars on this thread. The only ones I ever did before where reverse calendars (into report , one day trade) , which are very diff.
I was looking to open some calendars today and I noticed the new Feb options volatility was about 8% higher the the Jans. As of about 10:15 this was still the case, and this makes the calendar trade not very attractive. I assume this is because the Feb options are new and this will normalize. Has anyone else seen this before? If so, how long does it typically take for new option volatility to reach a normal level?
I can't answer your question but I did notice the same thing. After the last two weeks in Dec my "guess" is that overall volatility will rise, I believe Feb is historically a weaker month than Jan thus I think the Feb vol's will continue to be higher than Jan. I'm looking at adding to my Mar put calendar once the holiday's are over.
RR , FEB are reporting vols and JAN will have lesser trading days due to holidays...JAN/FEB vols ratio will only increase from here ( for certain stocks)
I bought ATM calendar Rut Feb/Jan 790 last Friday. How do we exit ATM calendar? I have burned once by a gap at the settlement morning.
Did You initiate the two leg separately? signé artes : [ http://dot-circle.net/coveredcall.html ] (french)