Calendars, Theta, ImpVol

Discussion in 'Options' started by Andy_Trade, Nov 23, 2007.

  1. Hi Hi Hi there,

    Calendar spreads look quite attractive, as I know my potential from the get go and as long as things don't jump around too much (which is the case for certain stocks more often than not) I'll be okay.

    Ive tried some straddles, strangles etc. even trying delta neutral adjusting but it can be cumbersome and the risks/losses can be surprising.

    I don't like surprises.

    Anywho, calendars seem quite nice and one thing I can predict if nothing else is the passage of time. I would like to hear some people's thoughts on calendars and how to curtail the effect of implied volatility as a sharp contraction can quickly turn a profitable position into a losing one.

    I've heard of 'vega neutral' somethingorother...

    Thanks for the replies
     
  2. :p

    You'll be surprised with the amount of surprises to come
     
  3. Consider money market accounts :)