Not buying the calendar every two weeks, just when a quiet period predicted. Using the higher theta of the near-term EW/ES. Optioncoach has been doing similar w/other spreads: 08-24-06 01:13 PM DIAGONAL POSITION UPDATE Sold 135 AUG EW 1315 Calls @ Average Price of 1.83 Credit = ~ $12,402.50 Bought 150 SEP ES 1335 Calls @ 1.45 Debit = $10,875 INITIAL NET CREDIT = $1,527.50
I didn't ask whether you were buying the calendar. I asked whether you were selling the ES/EW options. If you buy a calendar using October exp for long you can sell ES/EW 4 times.
Quite right Hybone. Tried to find "cheap" cals for quite a while then i realized was making better net on greater debit cals. If you have a 0.50 debit it is unlikly you can get a roll that exceeds your commisions by much at all. And you do have to estimate your roll(s) before you decide to get in.