I'm curious as to what strategies others employ to take advantage of the inflated IV prior to earnings. I tend to favor ratioed calendar strangles and one sided OTM ratio writes but will occasionally do a reverse calendar (near expiration if vols are severely inflated) or just a naked strangle. Any contributions for my learning curve?
Why Spin, is that really you? Are you still hanging out at the other cyber-place, or has everyone defected over here? I don't know how much I can contribute to your majesty, as I am not even worthy to change your vacuum cleaner bag - - - However, I've been doing the same as you, some strangles, some reverse calendars, and even some regular calendars. No huge quantities, just looking for a few pizza crumbs. AZD
All right I'll play...IV trader is the "master"of the RC and other strategies with regards to earnings...check out his posts.
Hey! Pizza Boy! (AZD) Good to read ya! I'm still over there a bit but it's in the crapper. More and more seem to be showing up here. Plus, the info here is much better. So much to learn, so little time Spin
Richard - Thanks for playing. I learned about the RC from IV Trader. I've done a number but haven't seen great results - just small profits that are enough to buy some guys a pizza If there's a pre-existig chain that addresses my question, would appreciate a trail of bread crumbs to it. If not, maybe I'll get lucky and others will contribute something. I'm just looking to expand my repertoire. Thanks.
actually my favorite is http://www.elitetrader.com/vb/showthread.php?s=&threadid=62104&perpage=6&pagenumber=1
this is what u look 4: http://www.elitetrader.com/vb/showthread.php?s=&threadid=61937&highlight=reverse+calendar enjoy
Here you go Spin. I'm a former yahoo lurker and learned quite a bit from you so the least I can do is direct you to one of IV trader's threads. www.elitetrader.com/vb/showthread.php?s=&threadid=74853&highlight=reverse It's not a long one, but it can always be revived. Good luck this earnings season.